Murdoch exits from China Pay TV Market

21st Century Fox-controlled Star Entertainment Holdings is selling its residual 12.15 per cent stake in the Chinese pay-TV operator Phoenix Satellite Television Holdings Limited (Phoenix TV) to private equity firm TPG Capital. TPG has agreed to buy Star’s 607 million shares in Phoenix at HK$2.73 per share, at a 2.5 per cent discount to its closing price of HK$2.80 on 18 October 2013. The other financial details of the deal were not disclosed. The two companies have entered into a definitive agreement. Upon completion of the sale, 21st Century Fox will no longer hold an equity interest in Phoenix and its representatives will step down from the board. 

Earlier this year, News Corp split into two companies – News Corp, retaining the newspaper and other media assets, and 21st Century Fox, holding the movie, TV and other entertainment properties. Before the split, 21st Century Fox and the publishing-focused News Corp cut its stake in Phoenix by 5.28 per cent in a $92 million deal. The move is cited to be Rupert Murdoch’s gradual exit from China. 

The deal was announced on the same day that Murdoch was re-elected chairman of Twenty-First Century Fox Inc (FOXA.O) despite protests from shareholder groups who sought to separate the chairman and chief executive positions of the family-dominated company.

Earlier in 2010, News Corp sold controlling stakes in three mainland television channels to domestic private equity funds. TPG is a leading global private investment firm founded in 1992 with $55.3 billion of assets under management. The firm’s investments span a variety of industries in China including China Grand Auto, China International Capital Corporation, Daphne, Lenovo, Shenzhen Development Bank (currently Ping An Bank), Wumart, Li Ning, HCP Holdings and Xinyuan Real Estate.

Source: http://cablequest.org/news/international-news/item/3347-murdoch-exits-from-china-pay-tv-market.html
Source: http://cablequest.org/news/international-news/item/3347-murdoch-exits-from-china-pay-tv-market.html