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Yahoo
29-01-2025
- Business
- Yahoo
Tycoon Richard Li to sell HKEJ publisher to PCCW for US$9 million in asset reshuffle
Hong Kong tycoon Richard Li Tzar-kai is reshuffling his assets again, this time by selling his personal interest in the publisher of Hong Kong Economic Journal (HKEJ) to telecommunications group PCCW for HK$70 million (US$9 million). PCCW, in which Li controls a 31.8 per cent stake, will buy the HKEJ's publisher Clermont Media from an offshore trust company in which he is the settlor, according to a stock exchange filing on Tuesday. Li expects to capitalise an undisclosed amount of his loans to the publisher in the transaction, ending his direct interest since he took control of the publisher in 2006. The original cost of the acquisition was stated as US$38.5 million, according to the PCCW filing. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. The South China Morning Post, owned by Alibaba Group Holding, competes with HKEJ. The sale will end almost two decades of Richard Li's direct interest in the publisher of the Hong Kong Economic Journal. Photo: Edmond So alt=The sale will end almost two decades of Richard Li's direct interest in the publisher of the Hong Kong Economic Journal. Photo: Edmond So> The price tag was based on a multiple of 0.69 times revenue, using the average ratio of 0.64 times from three unnamed Hong Kong-listed industry peers, the filing showed. That puts HKEJ's 2023 revenue at about HK$100 million, based on its acquisition price and earnings multiple. The publishing business under Clermont Media had a net loss of HK$30 million in 2023 and HK$16 million in 2022. It would have incurred a HK$3 million net loss in the six months to June 2024, assuming Li's personal loan to the firm was fully capitalised, PCCW said. Its consolidated net assets stood at HK$9 million in June. Li, the younger son of Hong Kong's richest man Li Ka-shing, last month closed another deal to sell part of his asset management business. His Pacific Century Group agreed to sell PineBridge Investments' business outside China to MetLife Investment Management for US$800 million. PineBridge managed about US$100 billion in assets, according to a statement in December. PCCW said the purchase of Clermont Media will allow the group to expand its advertising and subscription revenues by strengthening content for the news channel and enhancing the experience across its various media platforms. It expects to create operational efficiencies by leveraging its extensive resources. Apart from Chinese-language daily HKEJ, Clermont Media also publishes a monthly edition of the newspaper, hosts a website and an online application that offer free and subscription-based content relating to finance, economy, investment, lifestyle and education. This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved. Sign in to access your portfolio
South China Morning Post
28-01-2025
- Business
- South China Morning Post
Hong Kong tycoon Richard Li to sell HKEJ publisher to PCCW for US$9 million
Published: 7:07pm, 28 Jan 2025 Hong Kong tycoon Richard Li Tzar-kai is reshuffling his assets again, this time by selling his personal interest in the publisher of Hong Kong Economic Journal to telecommunications group PCCW for HK$70 million (US$9 million). PCCW, in which Li controls a 31.8 per cent stake, will buy the HKEJ publisher Clermont Media from an offshore trust company in which he is the settlor, according to a stock exchange filing on Tuesday. Li expects to capitalise an undisclosed amount of his loans to the publisher in the transaction, ending his direct interest since he took control of the publisher in 2006. The original cost of the acquisition was stated as US$38.5 million , according to the PCCW filing. The South China Morning Post, owned by Alibaba Group Holding, competes directly with the Hong Kong Economic Journal. The sale will end almost two decades of Richard Li's direct interest in the publisher of the Hong Kong Economic Journal. Photo: Edmond So The price tag was based on a multiple of 0.69 times revenue, using the average ratio of 0.64 times from three unnamed Hong Kong-listed industry peers, the filing showed.
