Huace Film to Purchase Croton Media for RMB 1.65 Bln
Shenzhen Stock Exchange, 7/29/13
Zhejiang-based film and TV production and distribution company Huace Film & TV (300133.SZ) has announced that it plans to fully acquire Shanghai-based TV production and publishing company Croton Media for a combination of stock and cash valued at approximately RMB 1.65 bln. 35% of the transaction will be made in a cash payment of RMB 578.20 mln, while the other 65% will made through the issuance of approximately 53.82 mln shares at a value of RMB 19.95 per share.
Huace will also raise RMB 550 mln in funding to go toward the RMB 578.20 mln cash payment to purchase Croton through a concurrent non-public stock issuance to no more than ten specifically-chosen investors. According to the conditions of the non-public stock issuance as stipulated by Huace, the amount raised is not to exceed 25% of the total value of the company's purchase price for Croton. No more than 30,623,600 shares will be released at a price of no less than RMB 17.96 per share. The remaining funds needed for the cash payment portion of the transaction will be raised by Huace through other means.
Croton engages primarily in the research, production, and distribution of films and TV programs. The company produces approximately 400 TV episodes per year. Huace earned a net profit of approximately RMB 215.04 mln in 2012.
Keywords: Croton film television Huace 300133.SZ M&A TV content production film production
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