Tycoon Richard Li Tzar-kai Reshuffles Assets with $9 Million Deal
Hong Kong business magnate Richard Li Tzar-kai is once again rearranging his assets, this time by selling his personal stake in the publisher of the Hong Kong Economic Journal (HKEJ) to telecommunications giant PCCW for a whopping HK$70 million (US$9 million).
A Strategic Move
The sale marks a significant shift for Li, who will capitalize an undisclosed amount of his loans to the publisher as part of the transaction. This move effectively ends his direct interest in the publisher, which he acquired in 2006 for US$38.5 million.
PCCW Expands its Reach
PCCW, in which Li controls a 31.8% stake, will purchase Clermont Media, the publisher of HKEJ, from an offshore trust company where Li is the settlor. The acquisition is expected to strengthen PCCW’s advertising and subscription revenues by enhancing content for its news channel and improving the user experience across its various media platforms.
A Look at the Numbers
The sale price was determined using a multiple of 0.69 times revenue, based on the average ratio of 0.64 times from three unnamed Hong Kong-listed industry peers. This puts HKEJ’s 2023 revenue at approximately HK$100 million. The publishing business under Clermont Media has struggled in recent years, incurring a net loss of HK$30 million in 2023 and HK$16 million in 2022.
Li’s Recent Deals
This sale is just the latest in a series of deals for Li, who last month agreed to sell part of his asset management business, Pacific Century Group, to MetLife Investment Management for US$800 million. PineBridge Investments, the business being sold, manages around US$100 billion in assets.
A New Chapter for HKEJ
The sale marks the end of almost two decades of Li’s direct involvement with the publisher of the Hong Kong Economic Journal. Clermont Media, which publishes a monthly edition of the newspaper, hosts a website, and offers an online application with free and subscription-based content, will now be part of PCCW’s media portfolio.
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