Shares of i-Cable Communications (1097) soared as much as 40 percent, after local tycoon Henry Cheng Kar-shun spent HK$208.9 million boosting his stake in the TV company's major shareholder Forever Top before a mandatory cash offer at HK$0.0264 apiece.
The investment increased New World Development (0017) chairman Cheng's stake in Forever Top from 31.5 percent to 72 percent, making him the largest shareholder of the company. Chow Tai Fook Enterprises, which is chaired by Cheng, owns 14 percent interest in Forever Top via Celestial Channel.
The remaining 14 percent is held by Hony Communications and its Expand Ocean under John Zhao Linghuan, the founder and chairman of Hony Capital, a private equity firm in China.
The vendor David Chiu Tat-cheong, chairman of Far East Consortium (0035), sold his 24.5 percent of stake in Forever Top at HK$148 million, and founder of Chinese developer Guangzhou R&F Properties (2777) Li Sze-lim offloaded his 16 percent at HK$60.9 million.
To that end, Chiu and Li sold all their interest in Forever Top and also the TV firm. Cheng then proposed to acquire i-Cable at HK$0.0264 apiece, a 61.18 percent discount to the price of HK$0.068 before a trading suspension.
Cheng has no intention to introduce any major changes to the existing operations of the group upon the completion of the deal, and the group will continue to operate its existing business after, the filing said.
i-Cable traded 17.65 percent higher at HK$0.08 yesterday.
Henry Cheng
