Gaming Firm Perfect World Returns to China A-shares via TV Studio Affiliate
Perfect World Pictures, 1/07/16
Chinese television and production company Perfect World Pictures (002624.SZ) will buy all assets of its online gaming affiliate Shanghai Perfect World Network Technology, a company previously listed on the Nasdaq stock exchange, for a total price of RMB 12 bln. Perfect World Pictures will issue a total of 614 mln shares valued at RMB 19.53 per share, to Perfect World (Beijing) Digital and Shihezi Junyang Investment in exchange for their stakes in Shanghai Perfect World Network Technology.
Separately, Perfect World Pictures will raise up to RMB 5 bln in supporting funds by issuing up to 212,224,107 shares, valued at RMB 23.56 per share, to four select investors. Among these investors, Michael Chi, Chairman of the various Perfect World entities, will subscribe for RMB 4.15 bln. The supporting funds will be used for film and TV program investment and game development, operation, and distribution.
Perfect World Network Technology has committed to achieving annual profits of not less than RMB 755 mln, RMB 988 mln, and RMB 1.198 bln in 2016-2018 as terms of the acquisition agreement. After the transaction, Perfect World Digital will be Perfect World Pictures' largest direct shareholder, and actual controlling shareholder Michael Chi will control a 57.77% stake.
Editor's Note: For information on Perfect World's delisting, please see Perfect World Approves Merger Agreement MD 7/28/15 issue.
Keywords: Shihezi Junyang online gaming Perfect World Michael Chi Internet television 002624.SZ M&A
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