Abney Associates Comments as Fox Sells Star China TV Stake.
Online, January 23, 2014 (Newswire.com) - Rupert Murdoch's 21st Century Fox Inc. has continued its policy founded in 2012 of selling of stakes in companies where obtaining a majority position was unobtainable with its recent sale of its minority 47% stake China Star TV, operator of three Mandarin language 24hr networks within China to a group comprising the majority shareholder China Media Capital and members of China Star's management team. Terms of the deal remain unknown at this point.
China Media Capital is a media focused fund that became China Star's majority shareholder in 2010 after purchasing a 53% holding from Murdoch's Fox. China Star TV operates three networks in China and neighboring countries, Xing Kong, Xing Kong International and Channel V Mainland China as well as Fortune Star Chinese Movie Library.
"Fox has been moving out of minority positions across the vast range of investments they hold in broadcasting and media companies across the globe. This has allowed them to focus on building majority positions such as with Sky Sports India and Sky Deutschland AG in 2012. If they cannot envision having a controlling stake in the short to medium term then that holding is likely, though not necessarily going to be sold off," described Katherine Chan, Senior Advisor at Abney Associates.
Even with 21st Century Fox's recent pattern of divesting itself from holding minority positions the media giant does still take selective minority stakes in well performing companies such as its 17% holding in one of the largest Chinese film distributers Bona Film Group Ltd as well as stakes in British Sky Broadcasting Group Plc and Hulu LLC. The media conglomerate saw its share value increase 1.3% to $35.63 in trading, with its class A shares gaining 56% in 2013.
"Fox was among the first western concerns to become actively invested in Chinese media back when most people were rather afraid of the idea of doing business in a very foreign and tightly regulated sector. These days it's almost a second nature investment, but Fox still shows a great deal of clarity and understanding in its investment strategy, we are continuing to monitor this share holding on behalf of our clients, giving the best advice to a well balanced client portfolio," stated Katherine Chan from Abney Associates.
Abney Associates are a Hong Kong based company that provides a range of financial services to individual clients, portfolio companies, corporate investors and entrepreneurs who wish to take unbiased financial advice.
Abney Associates are primarily a team of financial specialists who pride themselves on having a high level of expertise and vast experience for diligently monitoring any positive or negative developments to companies currently listed on exchanges globally, especially those that may affect client investment interests. This is done in order to ensure the financial advice given is factually correct and delivered in an effective way.