Country Garden Holdings (2007) chairman Yeung Kwok-keung is seeking a syndicated loan of about HK$7 billion to buy Run Run Shaw’s stake in Television Broadcasts (0511).
According to Basis Point, Citigroup is coordinating the loan for Yeung’s potential purchase of the TVB stake.
More than 10 banks have been invited, each underwriting at least HK$1 billion. The size of the facility is currently set at about HK$7 billion with an initial margin of more than 300 basis points.
Invited banks include Bank of China (Hong Kong), Bank of Communications, Bank of Tokyo-Mitsubishi UFJ, GE Commercial Finance, ICBC Asia, Mizuho Corporate Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.
Acquiring Run Run Shaw’s 26 percent stake in TVB will cost between HK$10 billion and HK$11 billion, a source said.
Aside from the syndicated loan of HK$7 billion, Yeung previously borrowed HK$3 billion from Henderson Land Development (0012) chairman Lee Shau-kee.
On Sunday, Lee confirmed The Standard report that he had loaned money to Yeung but declined to disclose if the collateral involved was shares in Country Garden or Shaw Brothers (Hong Kong) (0080).
Run Run Shaw has a total beneficial interest of 32.49 percent in TVB. He indirectly holds a 26 percent stake in TVB through his 75 percent ownership of Shaw Brothers (Hong Kong). In addition, The Shaw Foundation Hong Kong Ltd holds a 6.23 percent interest in TVB.[Source: TheStandard.com]
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