CMC Capital acquires stakes in HK broadcaster TVB
Chinese media-focused private equity firm CMC Capital Partners has acquired a stakes in the consortium that controls Television Broadcasts (TVB), a free-to-air broadcaster in Hong Kong.
Existing shareholders of Young Lion Holdings, which indirectly holds 26% of the voting shares of TVB, will sell shares to CMC M&E Acquisition, an entity owned by CMC. Financial details were not disclosed but Hong Kong's Communications Authority said Young Lion will continued to be controlled by TVB chairman Charles Chan Kwok-keung and that its stake will remain unchanged after the deal.
Ruigang Li, founding chairman of CMC Capital, will become a member of the investor group. The consortium, which also includes Cher Wang, chairwoman of Taiwan's HTC Corp. and Providence Equity Partners, acquired a 26% stake in TVB in 2011 from chairman Run Run Shaw in a deal worth up to $1.3 billion.
"As one of China's top media entrepreneurs who has sealed many high-profile deals involving Western leaders of the global media and entertainment industry, including Hollywood's film industry, Mr Li will be a great facilitator in helping drive TVB's growth in the film-making segment," Chan said in a statement.
Li is the former chairman of Shanghai Broadcasting and president of Shanghai Media Group (SMG). He set up CMC in 2010, which claims to be China's first media and entertainment-focused private equity fund approved by the National Development and Reform Commission (NDRC). Sponsors include China Development Bank, Wenhui-Xinmin United Press Group and SMG.
CMC previously established Television Broadcasts China (TVBC) through a joint ventures with TVB in 2012. Other investments include the purchase of New Corporation's China portfolio, separate joint ventures with Dreamworks Animation and FremantleMedia, and the acquisition of a stake in OCJ, a Chinese TV shopping business.
Last year, it partnered with FountainVest Partners to acquire a 20% stake in movie theater operator IMAX's China business for $80 million.
The investment in TVB follows the announcement that Hony Capital would join a consortium that is applying for a domestic free-to-air television license. A number of groups are looking to enter the space after the Hong Kong government decided not to renew Asia Television's license.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.