HONG KONG Oct 19 U.S. private equity firm TPG
Capital will pay HK$1.66 billion ($213.73 million) for
21st Century Fox-controlled Star Entertainment's remaining stake
in a Chinese satellite television operator.
The move is the next step of Rupert Murdoch's slow exit from
Chinese media, following News Corp's sale of controlling stakes
in three mainland television channels to domestic private equity
funds in 2010.
In a filing to the Hong Kong Stock Exchange late on Friday,
Phoenix Satellite Television said TPG China Media L.P.
will become a "substantial shareholder" after taking over Star's
entire 12.15 percent stake.
With the sale, Star representatives will also step down from
The deal was announced on the same day that Murdoch was
re-elected chairman of Twenty-First Century Fox Inc
despite protests from shareholder groups who sought to separate
the chairman and chief executive positions of the
Murdoch split News Corp into two companies in May,
with News Corp retaining the newspaper and other media assets
and Fox holding the movie, TV and other entertainment
Star, a Fox unit, sold its 607 million shares in Phoenix at
HK$2.73 per share or a 2.5 percent discount to its HK$2.80
closing price on Friday. No other financial details were
Fox was Phoenix's third-largest investor, according to
Thomson Reuters data.
Founded in 1992, TPG was among the first U.S.-based private
equity firms to establish operations in Asia. The firm's other
China investments include the country's best known sportswear
brand Li Ning Co Ltd, investment bank China
International Capital Corporation and speciality packaging
company HCP Holdings.