11.3 New Investors in Galaxy
One of the special conditions stipulated in the domestic free television programme service licences of TVB is that TVB may not hold 50% or more, in the aggregate, of the total voting control of Galaxy. Following Galaxy's majority shareholder Intelsat's decision to withdraw from Galaxy in September 2004, the Chief Executive in Council (CE in C) approved in December 2004 TVB's application for a temporary waiver of the above ownership restriction to allow TVB to have time to find another investor to take up the majority interest of Galaxy. The waiver took effect from 28 December 2004 to 27 December 2005 or such earlier date as appointed by the Authority.
On 12 August 2005, as approved by the Authority, TVB reduced its
interest in Galaxy to below 50%. It divested 49% of its interest
in Galaxy to Enjoy Profits Limited, and 2% to Dr Chan Kwok Keung.