HONG KONG – Centenarian film mogul Sir Run Run Shaw has abandoned
his plans to sell his Shaw Brothers (HK) company due to current world
financial turmoil.
Shaw made an announcement to the Hong Kong Stock Exchange Tuesday, and
blamed "the present tumultuous situation in the financial markets" for
the cancellation.
Company has few film interests left, but owns a key stake in Television
Broadcasts (TVB), Hong Kong's leading TV firm and one of the world's
biggest owners of Chinese content.
Shaw has been in protracted talks to sell his 75% interest in Shaw Bros
(HK) and has been actively negotiating with Chinese businessman Yeung
Kwok-keung since May.
It appears now that Yeung has been unable to secure the HK$5 – 7
billion ($644 – $902 million) bank financing necessary as shares in his
property development company Country Gardens Holdings, have tumbled.
Sale collapse is the second high-profile deal in four days to have been
called off in the territory. Sunday saw local telco giant PCCW announce
a "discontinuation of the auction process" for its media assets, HKT
Group Holdings.