Yeung Kwok-keung, chairman of mainland property developer Country Garden, is acquiring 26 percent stake in Hong Kong's Television Broadcasts Ltd (TVB) with at least HK$10 billion, a British newspaper reported.

Sir Run Run, TVB's founder and chairman, has agreed to sell his 74.58 percent stake in Shaw Brothers to Yeung, the newspaper said, citing sources familiar with the transaction.

Yeung was the only buyer who met the criteria laid down by Sir Run Run, who requested that the deal be worth no less than HK$10 billion in cash.

He beat other bidders including foreign private equity groups Blackstone and Carlyle to buy the stake, according to the Financial Times.

Tycoon Lee Shau-kee, the chairman of Henderson Land, said earlier that he was providing HK$3 billion to finance Yeung in bidding the stake of Shaw Brothers. Supporting Yeung, he told the reporters on Sunday that he doesn't want TVB to be owned by a foreign company.

Shares in Shaw Brothers rose 3.39 percent to close at HK$22.90 yesterday.

The stock has risen nearly 20 percent since mid-May, while Shaw Brothers said in a statement that its controlling shareholder was in talks to sell his stake.

TVB also rose 1.83 percent to end the day at HK$50.15, and gained 15 percent since mid-May.

The Financial Times said Yeung is interested in TVB because it is by far the biggest terrestrial broadcaster in Hong Kong. It is also one of the most popular broadcasters in southern China and one of the few foreign TV stations with right to broadcast on the mainland.

Matthew Kwok, a research head at Tanrich Financial, said the assets of Shaw Brothers are attractive and worth more than HK$10 billion.

He noted that the 26-percent stake in TVB is worth more than HK$6 billion and the company's site in Clear Water Bay has a valuation of more than HK$5 billion.

There will also be premium attributed to the listing status of Shaw Brothers.

"The site in Clear Water Bay is lucrative as the supply of that kind of plot is limited," Kwok said, "and the business of TVB is stable and profitable."

Kwok also added that the advertisement revenue has been growing steadily in recent years.

The business of pay-TV may not be able to contribute a lot to the company, but he sees a good potential of the business.

(HK Edition 05/28/2008 page2)