Jan. 17, 2007 (China Knowledge) – Asia Television (ATV), the smaller of Hong Kong's two free-to-air television broadcasters, will be delaying its IPO on the Hong Kong Stock Exchange pending government approval on a stake sale to Citic Guoan Information Industry.

ATV’s stock was supposed to start trading by the end of 2006. However, ATV said Tuesday that the listing would have to be postponed till at least the end of 2007. In May last year, ATV announced that the State-owned cable operator Citic Guoan would acquire 22.22% of the company, raising public concerns because this sale would be the first time a State-owned firm is buying into a Hong Kong television broadcaster.

According to Hong Kong's broadcasting regulations, as Citic Guoan is not a local company, the Broadcasting Authority and Chief Executive in Council must first approve of the deal.

 

Yu Tung-ho, ATV's chief operating officer, said the company might sell new shares to a local firm for fresh funds before a Hong Kong listing. Yu added that it would be easier for the new shareholder to get approvals from the government.

ATV will spend about HK$1 billion this year, including on relocation to its new headquarters in Tai Po, infrastructure for digitization broadcasting and producing programs. At least 400 hours of programming are expected to be produced by ATV this year, a leap from last year’s 100 hours.