HK China Oriental Culture enters into MOU of possible acquisition of Hunan Mobile TV equity interests

5 September 2011 15 h 00 min 9 comments

HONG KONG, 4. Sept, 2011 — China Oriental Culture Group Limited (stock code: 2371) is pleased to announce that the Company has entered into Memorandum of Understanding on 2nd September 2011.

Under the MOU, the Company intends to effectively acquire (by itself or through its wholly-owned subsidiary (ies)) (i) the exclusive entitlement to 49% of the economic benefits derived from Hunan Mobile TV and the rights to manage and operate Hunan Mobile TV; and (ii) 95% equity interest in Beijing Jiahua of Qingda Tech, with a total consideration of no more than HK$1.3638 billion.

Among the total consideration, HK$1,333,800,000 to be satisfied by the allotment and issue of a total of 2,600,000,000 Consideration Shares at the issue price of HK$0.513 each (which represents a 10% discount to the closing price of the Shares as quoted on the Stock Exchange on the date of signing of the MOU) on the closing of the Possible Acquisition; and HK$30,000,000 to be paid in cash within six months after the closing of the Possible Acquisition.

Hunan Mobile TV is principally engaged in the building, development, operation and management of mobile television network, the provision of broadcast TV programs, the transmission of multi-media information and the production, publication, transmission, use and management of television advertisement.

Beijing Jiahua is principally engaged in the development and promotion of arts and culture related activities in the PRC.

Commenting on the MOU, Mr. Li Qing, Executive Director of the Company, said “The Possible Acquisition, if materialized, will expand the Company’s outdoor advertising and TV drama production businesses in the PRC. The Possible Acquisition is also a step forward for the Group’s development of its cross-media platform. With the leadership development of the core businesses of the Group of outdoor advertising and TV drama production, all other media businesses under the Group’s cross-media platform will benefit from this unique synergy. The Possible Acquisition (if consummated) would provide an excellent opportunity to widen the Group’s income stream and generate better revenues and profits for the Group.”

China Oriental Culture Group Limited

The Group is principally engaged in the provision of advertising and consultancy services in respect of placing advertisements on the outdoor billboards and LED screens of the Group to advertisers and advertising agencies.

SOURCE China Oriental Culture Group Limited (5/09/2011)

Related posts:

Leave a Reply

You must be logged in to post a comment.

Other News

  • China (mainland) film Brilliant future expected for Chinese cinema: interview

    Brilliant future expected for Chinese cinema: interview

    Jiang Wen (R), a well-known Chinese director, walks down the red carpet with his wife Zhou Yun at the opening ceremony of the 70th Venice Film Festival in Venice, Italy, Aug 29, 2013. [Photo / Xinhua] (Xinhua, 04 Sep, 2013)Chinese films have achieved over the past few years very positive results in terms of both quantity and quality, and will drive their technology-led development, 70th Venice Film Festival president Alberto Barbera told Xinhua in a recent exclusive interview. This venerable [...]

    Read more →
  • Breaking news China (mainland) film Cloudary extends script to movie industry

    Cloudary extends script to movie industry

    (chinadaily.com.cn, 26 Aug, 2013) Cloudary Corp – an online literature platform owned by interactive media giant Shanda Group – said on Friday that it reached a film script agreement with the Chinese movie firm Seven Stars Films. Seven Stars Films, a movie production and investment firm owned by Chinese media entrepreneu r Bruno Wu, will link Cloudary’s literature with the world’s movie industry. Wu, who is married to popular TV host Yang Lan, founded Seven Star Films in 2012. The [...]

    Read more →
  • Breaking news China (mainland) film China’s movie market booms with local content

    China’s movie market booms with local content

    ( Agencies, 23 Aug, 2013) In “American Dreams in China”, Cheng Dongqing is giving a lecture in an abandoned factory in Beijing . Snow falls through the damaged roof and a power cut sends students reaching for their flashlights. The movie , about how young Chinese in the 1990s tried every means to learn English so they could study overseas, is part of a boom in domestic productions that is outpacing foreign film s at the box office in China. [...]

    Read more →
  • Breaking news China (mainland) film Fast forward with film

    Fast forward with film

    (China Daily, 23 Aug, 2013) In the past year, Chinese films have galloped ahead like a dark horse, beating Hollywood imports. It is hardly surprising that most of these domestic hits are comedies. Comedy is mostly local. When Hollywood sent scouts to recover the secret formula, many of them reported that these Chinese movies were not particularly funny. Of course not. When you translate every line into English, you have lost much of the fun, leaving only a few sight [...]

    Read more →
  • Breaking news China (mainland) Digital Mobile game firms looking abroad

    Mobile game firms looking abroad

    (China Daily, 21 Aug, 2013) Intensifying domestic competition is driving Chinese mobile game developers into overseas markets, said Google Inc, owner of the world’s most used smartphone operating system. Japan and South Korea may become “sizeable” money-spinners for developers in China in the coming years, it added. “Tapping into South Korea and Japan makes sense for Chinese developers, because both countries have a large smartphone user base and high sales volume in the mobile gaming sector,” said Ben Zhang, China [...]

    Read more →
  • Breaking news China (mainland) tv PPTV denies buyout rumors

    PPTV denies buyout rumors

    (chinadaily.com.cn, 14 Aug, 2013) Online video provider PPTV has denied rumors it will be jointly acquired by e-commerce giant Alibaba Group Holding Ltd and Hunan Satellite TV. “We have noticed related media reports. PPTV is operating independently, well, and we have nothing to announce at present,” PPTV told China Daily on Wednesday. A report from IT industry portal 36kr.com said on Wednesday that the prospective deal is almost closed, with the transaction reaching $400 million. It cited venture capital sources [...]

    Read more →
  • Breaking news China (mainland) film Film industry needs long tail to grow

    Film industry needs long tail to grow

    (China Daily, 15 Aug, 2013) The domestic film market registered record half-yearly box office returns of 10.9 billion yuan ($1.77 billion) in the first six months of this year, up 35 percent year-on-year, and there have been excited voices saying that the Chinese film industry is about to boom in the international market. However, box office success is just part of the industry’s chain, and without the further development of licensed movie merchandising, the Chinese film industry is still in [...]

    Read more →
  • Breaking news China (mainland) Digital New WeChat game becoming painfully popular

    New WeChat game becoming painfully popular

    (chinadaily.com.cn, 15 Aug, 2013) A new mobile phone game on WeChat, a social network app in China, is proving so popular that it’s causing hand injuries for many Chinese users. The game, which was recently introduced to WeChat’s 400 million subscribers, allows users to compete online with their friends in aircraft battles. Within two hours after the release of the game on Aug 5, there were more than 180 million downloads. But Zou Cheng, an orthopedic doctor at Hangzhou First [...]

    Read more →