The Hong Kong media company eSun, a partner in the Macao Studio City project, has cancelled a share issue after a US investor challenged the move in the Hong Kong courts.
San Francisco-based investor Passport Capital won an injunction in late December from Hong Kong’s Court of First Instance
The share issue would have raised HKD177 million (USD22.9 million) but was opposed by two funds belonging to Passport Capital that alleged eSun was acting in breach of its fiduciary duty.
“The [eSun] board believes that the interim injunction in favour of Passport should not have been granted. The company and its executive directors will continue vigorously to pursue their respective rights and remedies against Passport at (an) inter parties hearing on Jan. 22 and otherwise,” eSun said in a statement.
The statement said the board still believed eSun needed to raise funds to strengthen its capital base and develop the business, adding eSun would consider other options.
Passport was ordered by the court to provide a bank guarantee of USD15.5 million to compensate any potential loss to eSun, the media and property group headed by Peter Lam Kin Ngok, or alternatively to cover any damages awarded by the court.
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