TVB and Shaw Brothers acquire 75% of Ztore for HK$200 million to expand e-commerce business
(19 August 2021) Television Broadcasts Limited (TVB) and Shaw Brothers Holdings Limited (Shaw Brothers) will invest HK$200 million to acquire approximately 75% of the issued share capital of Ztore Investment Limited (Ztore) which owns and operates two e-commerce platforms in Hong Kong, namely ztore.com and neigbuy.com. TVB will own a majority of shares and voting rights in this investment.
TVB is engaged in terrestrial television broadcasting and programme production as its core businesses in Hong Kong and distributes content internationally. The Company has, in recent years, directed its efforts to monetise through direct-to-consumer businesses including video streaming services and e-commerce alongside traditional advertising services. The COVID-19 pandemic has accelerated shifting to digital lifestyles and online shopping has become a new normal. Big Big Shop, an e-commerce platform owned by TVB, has leveraged “showing on TV and selling in Big Big Shop” model to turn TVB’s audiences into its online customers.
TVB has identified e-commerce as an important engine for future growth. TVB is expected to expand the scale of its e-commerce business by over four times in terms of GMV immediately after this transaction.
This transaction is expected to create significant positive synergistic effects for both TVB and Ztore. TVB will benefit from Ztore’s e-commerce managerial resources to support future growth. The transaction will also accelerate customer acquisitions and GMV for Ztore with the increased promotion on TVB’s channels and platforms. Substantial synergies are expected to be generated from the integration of warehouse management and order fulfilment systems as well as the integration of pickup points network which may form one of the largest in Hong Kong post-transaction.
Ztore co-founders, existing CEO and COO, namely Danny Shum Tik Chan and Jack Leung Tsz Ki will continue to lead Ztore post transaction.
For details, please refer to TVB announcement published on 19 August 2021