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Chinese All Digital Publishing to Acquire Mobile Game Operator MorningTec

Chinese All Digital Publishing, 8/10/17

Beijing-based e-book publishing firm Chinese All Digital Publishing Group (300364.SZ) has announced a plan to acquire the remaining 80% stake that it does not own in Shanghai-based mobile game operator MorningTec for RMB 1.47 bln. When combined with the 20% stake Chinese All Digital Publishing already holds, MorningTec will become a fully owned subsidiary.

Chinese All Digital Publishing will pay RMB 450 mln in cash and issue 64.02 mln shares at a price of RMB 15.98 per share to fund the transaction.

MorningTec specializes in mobile entertainment, app technology development, and app distribution. Within the social networking, gaming, and live video broadcast industries, it is active in 2D content intellectual property operations, gaming, animation, performances, and key opinion leader (KOL) marketing.

As part of the purchase agreement, MorningTec guarantees that net profits for 2017, 2018, and 2019 will be no less than RMB 150 mln, RMB 220 mln, and RMB 264 mln, respectively.

Editor's Note: For more information on this topic, please see "Chinese All Digital to Buy 20% Stake in Mobile Game Operator MorningTec," MD 11/21/16 issue.

Keywords: wireless MorningTec Chinese All Digital Publishing 300364.SZ M&A mobile gaming

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