CMMB Vision Acquires Stakes in Mainland CMMB Firms
Hong Kong Exchange, 9/03/10
Hong Kong-based investment holding company CMMB Vision (0471.HK), formerly Global Flex Holdings, has announced the establishment of CMMB Vision China, a wholly-owned subsidiary created as a wholly foreign-owned enterprise (WFOE) in Beijing, which will act as CMMB Vision's operating arm for its CMMB mobile TV businesses in China.
CMMB Vision also announced that it entered into an equity transfer agreement on September 2 with BVI-based holding company Excel Vanguard, under which the company will acquire a 30% equity interest in China's only CMMB channel turnkey services operator Fuxue (Beijing) Media Co., Ltd. and a 30% equity interest in Chinese media production company Deshen (Beijing) Interactive Media Co., Ltd. Total consideration for the deal is HKD 81.61 mln, of which HKD 15.35 mln will be paid in cash and the balance of HKD 66.26 mln will be paid in shares to be issued at HKD 0.125 per share by CMMB Vision, which represents an 11.61% premium to the closing price of the last trading day and about 18.50% of total current outstanding shares. The equity interests will be held under the China subsidiary.
Fuxue also has operating rights in Liaoning and Yunnan CMMB through government partnerships and is already broadcasting daily programs with its internally developed 40,000-hour film library as support. It is also developing channel services in other provinces and expects to achieve nationwide coverage within a year.
Keywords: CMMB Vision 0471.HK Fuxue Media Deshen Interactive Media investment television CMMB mobile phone TV wireless 0471.HK
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