Shanghai Stock Exchange, 1/04/11
The Publicity Department of the Central Committee of the Communist Party of China, China's Ministry of Finance and State Administration of Radio, Film and Television (SARFT) have approved plans to restructure China Film Group into a new company, Zhongguo Dianying Gufen Youxian Gongsi ("China Film Co., Ltd."), in preparation for an IPO. The new company will have RMB 1.4 bln in registered capital. Beijing-based cable and broadband operator Gehua CATV Network (600037.SH) will invest RMB 21.31 mln to acquire 14 mln shares, or a 1% stake.
China Film is licensed to produce films and TV programs as well as publish and reproduce Chinese films and other audiovisual products.
Gehua said the investment was part of an effort to forge links between its DTV business and the content supply chain in order to increase profitability.
Editor's Note: For more information on this topic, please see "China Film Group to Establish Gaming Company," MD 12/07/09 issue.