Minority shareholders in Hong Kong pay TV broadcaster i-Cable Communications have voted to approve a rescue plan that will inject fresh cash into the struggling operator following the withdrawal of support by its majority shareholder.
Wharf Holdings announced in March that it will stop providing funding for the broadcaster following nine consecutive years of losses, and that it was considering winding down the company after failing to find a buyer for its 73.8% stake.
But now consortium Forever Top has agreed to step in and be the new majority shareholder, injecting fresh funding into the company.
i-Cable launched in 1993 as Hong Kong’s first pay TV operator. But the company’s subscriber base has been declining over the past five years, the report notes, and its net losses have been widening.
Industry experts are urging the company to rebrand and modernize its operations, focusing on providing OTT video services over its website. The company is also being encouraged to expand its operations to outside of Hong Kong.