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Shaw Brothers shareholders approve privatisation

Shaw Brothers shareholders have approved an offer by controlling shareholder Shaw Holdings to take the company private for HK$1.33 billion or HK$13.35 per share.
Reuters | By HT Correspondent, Hongkong
UPDATED ON FEB 27, 2009 01:16 PM IST

Shaw Brothers shareholders have approved an offer by controlling shareholder Shaw Holdings to take the company private for HK$1.33 billion or HK$13.35 per share, the company said on Friday.

Shaw Holdings, owned by tycoon Sir Run Run Shaw, already had a 74.92 per cent stake in Shaw Brothers before offering to buy the remaining shares.

Analysts had said such a deal could pave the way for Shaw Holdings' sale of Shaw Brothers, including the unit's major asset Television Broadcasts Ltd (TVB, Hong Kong's largest broadcaster.

But the company's vice chairman, director and wife of Run Run Shaw, Mona Fong, denied such plans.

"I've never put the company (Shaw Brothers) up for sale and I have no intention of selling TVB as well," she told a media briefing after an extraordinary general meeting (EGM).

Besides the TVB stake, Shaw Brothers also owns a Clear Water Bay property site with a developable gross floor area of about 1 million square feet of commercial and residential properties, which analysts have valued at about HK$4-5 billion in current market terms.

Shares of Shaw Brothers were suspended before trading opened on Friday morning. The stock closed on Thursday at HK$13.20, off a 52 week high of HK$24.30.

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