Preliminary discussions have begun into the possible sale of Apple Daily Taiwan, an affiliate of Hong Kong’s Apple Daily newspaper, according to Chung Kim-hung, the chief executive of Next Digital.
A potential buyer has given an intention to purchase the assets in Taiwan, Cheung told Apple Daily. The Next Digital group, which owns both newspapers among other companies, will review the purchase price as well as the best interests of all employees at Apple Daily Taiwan, Cheung said.
Apple Daily Taiwan is an important group asset that is seeking a new operating model, and management has promised to improve its situation, according to Cheung. The newspaper has lost money due to the COVID-19 pandemic, but those losses are being reduced through the efforts of management and staff, he added.
Next Digital, a listed company in Hong Kong, has informed the city’s stock exchange that it has entered into a non-legally binding memorandum of understanding with a potential purchaser of Amazing Sino International Limited. Amazing Sino is a wholly-owned subsidiary of Next Digital incorporated in the British Virgin Islands, which holds various assets including Apple Daily Taiwan and a property in Taiwan.
The identity of the buyer and the price have not been revealed. The parties to the memorandum of understanding are still in discussion on the exact assets and businesses which may be sold. The final terms of the definitive agreement will be subject to further negotiations.
The potential sale is aimed at enabling Next Digital to rationalize and focus its resources on its profitable operations, which should in turn enable it to improve its overall business performance, it said.
The memorandum of understanding will terminate automatically in one month unless extended by the parties in writing. It contains a provision that neither party will solicit or entice away staff of the other party either directly or indirectly.
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