PR Newswire Asia, 2/23/11
Television advertising and content production firm Media China (0419.HK) today announced that it has entered into a conditional agreement with an independent party for the acquisition of the entire interest in Smart Title Limited, which indirectly operates Beijing-headquartered membership-based luxury club Bayhood No. 9 Club, at a consideration of HKD 500 mln. Media China expects the transaction will reinforce the group's tourism business in Mainland China.
Under the terms of the conditional agreement, Media China will pay HKD 395 mln in cash, with the remaining HKD 105 mln to be settled through the issuance of new shares at an issue price of HKD 0.035 per share, which represents a premium of approximately 2.94% over the closing price of the stock immediately before the suspension of trading. Application has been made by the company for resumption of trading in the shares with effect from 9:30 a.m. on February 23, 2011.
Bayhood No. 9 Club is comprised of business hotel facilities, an 18-hole golf course, driving range facilities, theme restaurants and cafes, spa facilities, retail shops, and the first PGA branded and managed golf academy in Asia. It commenced operation in 2006. Unaudited revenue and net profit after tax for the first 10 months in 2010 were approximately RMB 125 mln and RMB 41 mln respectively. The vendor has provided an indemnity that the audited net profit after tax of Smart Title Limited and its subsidiaries shall not be less than RMB 80 mln in aggregate for the years 2011 and 2012.