A group of investors comprised of Hong Kong Mingly Corp chairman Payson Cha, his brother Johnson, and CITIC group have agreed to buy a combined 58.33 percent of Asia Television Ltd (ATV), ATV senior vice president H Y Kwong said.

He declined to disclose the total sum that the new shareholders are paying, saying it is up to the latter to decide whether or not to reveal this.

Kwong said ATV's position in Hong Kong's broadcasting industry vis-a-viz that of rival Television Broadcasts Ltd (TVB) will be bolstered by the entry of new shareholders, especially because of their expertise in both the Hong Kong and mainland TV industries.

"CITIC group currently has extensive cable TV operations in northern China where they have some 200 million subscribers. We are hoping to gain from their expertise and experience in expanding our services and undertaking new initiatives in the Hong Kong market," he said.

Kwong said Louis Rajkumar Page, a member of the Cha consortium, used to work as managing director of TVB and he will assume the post of ATV chief executive officer following the completion of the transaction in the next "several weeks" involving the entry of new shareholders into ATV.

"ATV will remain focused on the Hong Kong market although we are not ruling out the possibility of entering the China market in future with the CITIC group - -now one of our shareholders," he added.

"In Hong Kong, we plan to go into digital broadcasting and mobile TV, a new service which will allow us to transmit our content into mobile electronic devices including handphones, " Kwong said.

"Going into cable TV operations here is not being considered at the moment even if the CITIC group has extensive expertise in this area," he said.

Kwong said that the Cha family were originally going to use their listed company, Mingly Corp, for their proposal to invest in ATV.

But the Cha family eventually decided to set up two separate private companies, Alnery No 112 Ltd and Panfair Holdings Ltd, which are two of the three new shareholders in ATV, he said.

The third new shareholder, China Light Group Ltd, is owned by the CITIC group.

Of the combined 58.33 percent that the new investors are taking in ATV, the Cha-led consortium accounts for 43.52 percent with the balance being taken by China Light Group.

Payson Cha will assume the post of chairman of ATV.

Current shareholder Dragon Viceroy Ltd will see its interest reduced to 26.85 percent from more than 50 percent following the entry of the Cha-led investors, Kwong added.

He said the government has given its approval to the entry of the Cha-led investors into ATV.