Taiwanese snack tycoon Tsai Eng-meng poses under the flashing lights at a press conference in Hong Kong yesterday. The Want Want Chairman countered major ATV shareholder Payson Cha's allegations at the conference. Credit to China Daily

Ongoing conflict between Taiwanese tycoon and Payson Cha no big concern: Wang Zheng

The dispute over the control over Asia Television (ATV) took a new twist yesterday, with the Chairman of Sing Tao News Corporation Charles Ho holding a press conference in support of Taiwanese snack tycoon Tsai Eng-meng, saying he had gone through a similar experience in the past, much like what Tsai has experienced in dealing with major ATV shareholder Payson Cha.

Tsai is suing Cha for failing to honor an agreement that would give Tsai control of ATV, and also for alleging he diluted Tsai's influence by issuing shares at a lower than agreed price.

After Cha criticized Tsai, chairman of Want Want, for "making trouble out of nothing" on Friday, Tsai held a press conference yesterday to counter Cha's allegations.

"Cha was the one who breached the contract. He had pushed me too far," said Tsai.

Tsai insisted the existing contract has granted him rights to demand Cha transfer shares to a suitable candidate nominated by himself. Tsai also questioned Cha's sincerity toward ATV. He said if Cha was really optimistic about ATV, he should have taken many chances to increase his holdings in the broadcaster, which Cha didn't do, instead formulating plans to sell his stake to someone else.

Tsai said he injected HK$150 million into ATV during April and September last year, a move that no other shareholders matched.

"My response today is to defend my own dignity and rights of other shareholders. I will not garble a statement the way Cha did to favor himself," said Tsai.

Cha was "going too far". He also said Sing Tao's Charles Ho, whom he never met before, made a phone call to him in the morning and offered sympathy and support.

"Ho had previously gone through something with Cha similar to what I have. He asked me to touch on his support for me in today's press conference," said Tsai.

Sing Tao's Charles Ho confirmed Tsai's remarks in the subsequent press conference held at the same hotel. However, Ho did not elaborate on the aforementioned similar experience in detail, but said he had already put behind the experience, which happened 10 years ago, one in which he was not being "cheated", but during which he was, he said, being too "naive". It is believed Ho's dispute with Cha was over the purchase of Sing Tao.

Ho said that he doesn't want people to get the impression that Taiwanese businessmen are getting a raw deal in Hong Kong, since Ho himself, a Hong Konger, also suffered a similar experience.

"Tsai was a successful businessman who went from rags to riches. He is unfamiliar with rules in the city, and I think his reaction was understandable," Ho said.

"But he should think carefully before doing things later," Ho added.

Responding quickly, Payson Cha spoke to the media yesterday afternoon in Beijing. Although long familiar with Ho, Cha he said he could not recall any business dealings with him.

"It was a long time ago, and I might have been interested in Sing Tao Group when I was young. But I was dealing with Sally Aw (the now deceased former Chairman of Sing Tao). I will go back to check these things through. If I was doing anything wrong at that time, I am willing to admit it," said Cha.

The mainland property tycoon Wang Zheng, who has been confirmed by Cha as a new ATV shareholder, showed less concern with the current controversy.

"The whole incident was just some disputes among the shareholders, and resorting to litigation for a solution is not surprising to me. I don't think it is a big deal, and some disparities will not affect ATV's operation," said Wang.

Secretary for Commerce and Economic Development Rita Lau said yesterday they have not received ATV's applications for shareholding changes. Lau said it was not appropriate to comment on ATV's current equity disputes before the actual purchase is eventually revealed.

(HK Edition 03/09/2010 page2)