ATV signs deals with China Life and other mainland heavyweights

Updated: 2010-03-12 07:38

By Li Tao(HK Edition)

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Planned collaboration spans advertising, technical support and capital operations

In a move that attests Asia Television's strong mainland ties as much as its improving commercial prospects, ATV signed agreements with five large mainland enterprises for future strategic cooperation yesterday in Beijing.

The Hong Kong television station was represented by Wang Zheng, who nonetheless admitted he was technically not yet a shareholder of ATV. Wang is also the chairman of Shenzhen-listed property developer Rongfeng Holding and has declared his ambition to make ATV "the CNN of Asia".

"Thank you heaven and Earth, which finally brought us together," Wang said at the ceremony.

The five mainland giants, China Life, China Overseas Holdings, GDH group, China Merchants Bank, and Bank of Beijing will undertake collaboration with the troubled broadcaster, in areas that include advertising, technical support and capital operations. But the deal does not involve shareholding.

"If Wang Zheng needs money, we will take care of all his property business in the mainland and Hong Kong, and support him with billions of yuan," said Sun Wenjie, president of the China Overseas Holdings.

Wang, ATV's new boss waiting in the wings, said this collaboration will not involve any equity sales, but will promote a platform through the broadcaster for the development of these companies in Hong Kong.

"Since mainland enterprises are not eligible to invest in ATV directly, we decided to work with ATV to exploit opportunities for more publicity for the company in Hong Kong," said Ma Weihua, President of China Merchants Bank.

Wang said he will lay plans for ATV's medium to long-term reform, and instead of cutting jobs, ATV will be expanding its staff in the future, to which he added that freedom of the press will be respected.

Wang acknowledged before signing the deal with ATV that he had considered investing in the other free-to-air TV station in the city, Television Broadcasts Limited (TVB), but decided it was too expensive.

Wang stressed his current post at ATV is still a volunteer position, as the whole share acquisition procedure has not yet completed.

Payson Cha, ATV controlling shareholder, also appeared at the ceremony yesterday. Embroiled in an ongoing row for selling ATV shares, Cha said Wang was "the best partner to work with" and one who has been supportive of ATV during a most difficult time.

"I identify with Wang's thoughts and aspirations, and I admire his determination to elevate ATV to the rank of a global platform," said Cha.

Chairman of Sing Tao Newspaper, Charles Ho, who had earlier criticized Cha over an earlier deal, said Wang Zheng is sincere in making a success of his investment in ATV, and that therefore the broadcaster'ss staff should feel reassured.

(HK Edition 03/12/2010 page2)