Photo: AFP
Shares in Hong Kong's Next Media, controlled by media mogul Jimmy Lai, on Thursday jumped as much as 56 percent after the firm said it would sell its Taiwan assets in a deal worth $600 million.
The stock rose to HK$1.75 in morning trade, a day after Lai signed two memoranda of understanding with Jeffrey Koo Jr, chairman of the Chinatrust Charity Foundation. The benchmark Hang Seng Index was up 0.62 percent.
The deal -- which has seen Koo pay 10 percent of the fee as a refundable deposit -- involves Apple Daily's Taiwan edition, Taiwan Sharp Daily, Next magazine and Next TV.
The deal, if completed, will mark Lai's exit from Taiwan after he expanded his media empire to the island in 2001 with the launch of Next magazine and Apple Daily, which have both been commercial successes.
But his venture into its saturated television market, where there are more than 100 cable TV channels including six 24-hour news stations, in the middle of 2011 appeared to be a failure, according to media reports.
Koo has the exclusive right until November 16 to negotiate over the deal.
Next said the transaction would allow it to focus its resources on its operations in Hong Kong and in further developing its digital businesses.