BASIS POINT-Country Garden chairman eyes TVB stake-sources
HONG KONG, May 19 (Reuters Basis Point) - Banks are arranging funding for the chairman of Country Garden Holdings (2007.HK), Yeung Kwok Keung, to bid for a stake in Hong Kong's Television Broadcasts (TVB) (0511.HK), bankers told Reuters Basis Point.
Officials at Chinese property developer Country Garden were not immediately available for comment on Monday.
TVB, which has a market value of about $2.84 billion, is Hong Kong's dominant commercial television station.
The stake being sold was the roughly 19.5 percent of TVB controlled by Shaw Brothers' chairman, Run Run Shaw, via his 75 percent ownership of Shaw Brothers 0080.HK, bankers told Basis Point.
Shaw Brothers said last week that its controlling shareholder was in talks to sell his stake in Shaw Brothers.
The banking facility for the potential purchase was originally targeted to be roughly HK$10 billion ($1.28 billion) but is now expected to be reduced, banks sounded out by Citigroup (C.N) on the deal said.
A Citigroup spokesman declined comment.
It was unclear whether a possible rival bid from a foreign private equity fund would go ahead, Basis Point said. U.S. buyout giants Bain Capital, Blackstone Group (BX.N) and Carlyle Group [CYL.UL] have been cited in media reports as eyeing control of TVB.
More than 10 banks have been sounded out, including several Chinese and Japanese banks, and the facility is expected to offer an initial margin of more than 300 basis points.
Funds would be borrowed through a special purpose company set up to own the stake, Basis Point added.
Shares in TVB were up 1.8 percent on Monday, while Shaw Brothers was up more than 3 percent.
TVB shares last traded on Friday at HK$50.05 per share, a 16 percent jump from the previous week's close of HK$43.15. Shaw Brothers last traded at HK$20.85 per share, about 11 percent higher than the previous week's HK$18.78 close.
TVB and Shaw Brothers' shares were suspended briefly on Wednesday afternoon after both jumped on speculation about the stake sales. ($1=HK$7.8) (Reporting by Jacqueline Poh; Editing by Alan Raybould & Anne Marie Roantree)
