Hunan TV and Broadcast Intermediary (000917) and wholly controlled subsidiary Hunan Huiyue Cable Network Limited plan to pay 66 million yuan for stakes in Hunan Cable TV Network Group and Hengyang TV and Broadcast Limited, reports stcn.com, citing a company filing.
The acquisition plan includes equity in unspecified town-level internet joint ventures. Hunan TV will pay 51 million yuan for the acquisitions, while its subsidiary will contribute 15 million yuan.
This investment is part of the strategy of the company to focus on cable and to consolidate most of the Hunan Province cable operators. In 2010, its cable TV network business has seen great growth in both revenues and profits in 2010 which contributes to the predicted increase of the entire company. It has to date integrated 96 cable TV companies in Hunan province.
SOURCES: Capital Vue, stcn.com (11/03/2011)