Next Media Ltd, controlled by Hong Kong media mogul Jimmy Lai, agreed to sell its Taiwan print and television businesses to two consortia for NT$17.5 billion ($601 million), spokesman Mark Simon said on Wednesday.
Next Media will sell its Taiwan print assets to four investors including Want Want Chinatimes Group President Tsai Shao-Chung, William Wong of the Formosa Plastics Group, Chinatrust Charity Foundation Chairman Jeffrey Koo Jr and Lung Yen Life Service Corp Chairman Lee Shih-tsung, Simon said.
Lai is exiting most of his Taiwan businesses after battling regulators for licenses and distribution rights. The investment by Tsai, son of Want Want China Holdings Ltd Chairman Tsai Eng-meng, may raise regulatory concerns as Lai's Apple Daily and the Tsais' China Times will have a combined newspaper market share exceeding 45 percent, according to National Chung Cheng University's Kuang Chung-Hsiang.
"The deal may have to obtain approval from the fair-trade commission," Kuang, an assistant professor of communications, said before the announcement. "The overhang is there."
Taiwan's Fair Trade Commission, which hadn't received a submission, said on Wednesday it will hold a public hearing on Thursday.
Lee Tai-hung, chairman of Taiwan Fire & Marine Insurance Co, replaces Tsai in the group buying the television assets, Simon said. The pacts were signed on Tuesday, he said.
Taiwan Fire & Marine and Lung Yen said on Wednesday in separate statements to the Taiwan stock exchange that the investments were by their chairmen and doesn't involve the companies.
Apple Daily Taiwan, a Next Media publication, reported the agreements earlier Wednesday, which Simon confirmed.
Next Media, which suffered two annual losses due in part to its Taiwan television and multimedia unit, said on Nov 12 it will post a substantial loss for the six months ended September.
Lai said in a video clip posted on Next TV on Oct 16 that he had failed in Taiwan.
Lai will retain 70 percent of Taipei-based Next Media Animation, with Next Media holding 30 percent, Simon said. Next Media's Taiwan operations accounted for 42 percent of its sales for the year ended March 2012, its second-biggest market after Hong Kong.
Losses at its Taiwan television and multimedia unit widened to HK$1.17 billion ($151 million) last fiscal year from HK$459 million a year earlier, according to its annual report.