Hong Kong Television Network has not reached any agreement with the beleaguered free-to-air broadcaster ATV on buying its shares, the company said on Wednesday morning, in another twist to events.
In an announcement made on the stock market's website, HKTV admitted its chairman Ricky Wong Wai-kay did meet with ATV major investor Wong Ching once on March 26.
It said however: "No agreement or agreement in principle has been reached by Mr Ricky Wong, whether or not on behalf of the company with anyone with regard to the possible transaction.
"The company has not entered into any discussions with the joint and several managers of ATV appointed by the High Court of Hong Kong Special Administrative Region," the statement from HKTV added.
The denial comes just hours after an announcement was made during ATV's Chinese-language newscast that de facto boss Wong Ching had agreed to sell his controlling stake to HKTV's maverick chief, Ricky Wong. According to the report, Wong Ching and Wong Ben-koon, who holds a total 52.4 per cent stake on paper, had accepted Ricky Wong's offer for the stake.
ATV's announcement stunned industry insiders, particularly because Ricky Wong had repeatedly and categorically denied he would do any such deal with the station he once ran for 12 days.
They described it as a slap in the face for Chief Executive Leung Chun-ying, who was evasive when asked about ATV on Tuesday morning. Leung would only say ATV's licence was being handled according to established procedures and the law. The Executive Council was due to hold a special meeting on ATV on Wednesday, arranged before Tuesday's shock announcement.
Accountants from Deloitte were earlier appointed by the court as ATV managers to sell a 10.75 per cent stake from major shareholder Wong Ben-koon, a relative of mainland investor Wong Ching.
HKTV said in the notice that the March 26 meeting was to exchange and discuss preliminary ideas on how assistance may be provided to assist in ATV's operations and a renewal of its domestic free television programme service licence.
Former secretary for commerce and economic development Frederick Ma Si-hang said ATV could have possibly breached laws by issuing false information relating to sale of its shares.
Ma said he believed the Securities and Futures Commission, the market watchdog, would launch an insider trading probe over the matter.
Ma said ATV's announcement on Tuesday - which he described as shocking - led HKTV's stock prices to rise.
"So should anyone have benefited from the information ... I think the SFC would take the initiative to investigate," he told Commerical Radio.
The commission could not immediately comment whether a probe would be launched.
HKTV shares jumped 75 cents, or 24.42 per cent, to HK$3.82 - the highest since the beginning of this year - at one stage on Wednesday morning.