CNC Holdings Limited, a newly-named company owned by China Xinhua News Network Corp (CNC), the TV arm of China’s state-run Xinhua News Agency, made its debut on Wednesday on the Hong Kong stock exchange.
The quotation debut came after a shareholders’ meeting of the listing company Tsun Yip Holdings Limited on January 16 decided to change its name to CNC Holdings Limited 中國新華電視控股有限公司 “based on the company’s new business direction,” while its stock code remained unchanged, 8356, a news release said. Before the back-door listing, Tsun Yip Holdings Limited was engaged in waterworks engineering services.
The shares started trading in Hong Kong on 8 february and the stock closed 0.8 percent higher at HK$1.33 in Hong Kong trading. The unit’s listing isn’t the first for Xinhua. Xinhua Finance Inc., now known as Xinhua Holdings Ltd., was the first Xinhua’s subsidiary to be listed on the Tokyo stock exchange through an initial public offering in 2004.
Satellite operator capital reshuffle
According to CNC release and circular, three shareholders of its Asia Pacific’s channel carrier, including CNC limited Co, APT Satellite Company Limited (APT) and Ao Rong Investment Corporation, had signed an agreement with Tsun Yip Holdings on September 6. Under the agreement, Tsun Yip Holdings purchased all the shares of CNC Asia Pacific’s channel carrier at a cost of HK$700 million ($90.27 million), with price of newly-issued shares being set at HK$0.196 per share. After completing the transaction under legal procedures on December 9, CNC’s HK branch held 28.5 percent stake in Tsun Yip Holdings, becoming its largest shareholder, and a new board of directors had been established, with Wu Jincai, CNC president and Xinhua’s deputy editor-in-chief, as chairman.
International development of CNC TV
CNC Holdings Limited new major activity will be the international development of CNC TV. ”CNC’s overseas news service has gained support from the international capital market, a boost which can lay foundations for it to build a modernized media institution with global influence and competitiveness”, the news release said.
Wu Jincai said that CNC aims to localize its services while extending its global reach, and will also seek to improve its news reporting and the quality of its programs. China Xinhua News Network Corp., the TV unit of state-run Xinhua News Agency, plans to expand into about 100 countries in an effort to boost its global influence
Established in 2009 as part of Xinhua’s ambition to build a multimedia press institution, CNC kicked off its Chinese channel on January 1, 2010, and its English channel on July 1, 2010. In July, China’s official news agency leased a 60- foot by 40-foot sign in Manhattan’s Times Square to promote its expansion of services in the U.S. Both channels target audiences of all over the world, available via satellite, cable TV, digital media, the Internet, and other platforms. CNC’s signal has reached nearly 60 countries and regions including the United States, the United Kingdom, Canada, New Zealand and Thailand.
The listing of CNC could be followed by the Shanghai listing of the online news portal of Chinese government mouthpiece, the People’s Daily. The state owned daily Group hopes to raise 527 million yuan ($83.72 million).
SOURCES: China Daily, Xinhua, Bloomberg (08/02/12), reuters (09/02/12)
ON CSN WEBSITE
ON THE WEB
. Xinhua TV Unit Plans Global Expansion as Its Shares Make Debut
Bloomberg / Business Week 08/02/12
. China Xinhua TV in global media push, lists in Hong Kong