HK shares in Next Media jump on Taiwan deal

Shares in Hong Kong’s Next Media, controlled by media mogul Jimmy Lai, on Thursday jumped as much as 56 percent after the firm said it would sell its Taiwan assets in a deal worth $600 million.

The surge came a day after Lai signed two memoranda of understanding with Jeffrey Koo Jr, chair of the Chinatrust Charity Foundation.

It ended at HK$1.58, up 41.1 percent, while the benchmark Hang Seng Index was up 0.48 percent.

The deal – which has seen Koo pay 10 percent of the fee as a refundable deposit – involves Apple Daily’s Taiwan edition, Taiwan Sharp Daily, Next magazine and Next TV.

If completed it will mark Lai’s exit from Taiwan 11 years after he expanded his media empire to the island with the launch of Next magazine and Apple Daily, which have both been commercial successes.

But his venture into its saturated television market, where there are more than 100 cable TV channels including six 24-hour news stations, in the middle of 2011 appeared to be a failure, according to media reports.

The Hong Kong tycoon has not explained why he is selling the Taiwan assets, but in a short video clip posted on the Apple Daily website he told staff: “I have to go home, I’m really sorry.”

There had been speculation that Lai would sell his loss-making Taiwan TV unit but he was reportedly advised to sell the entire Taiwan operations to attract buyers.

Lai has also previously accused Taiwan’s government of trying to rein in the island’s once-vibrant media when it repeatedly rejected his application for a news channel, citing the group’s sensational reporting style.

Next said the sale would allow it to focus its resources on its operations in Hong Kong and in further developing its digital businesses.

Koo has the exclusive right until November 16 to negotiate over the deal. http://sg.news.yahoo.com/hong-kong-shares-next-media-jump-taiwan-deal-041134840-finance.html

 

Category: FinanceAsia