Shaanxi Broadcast & TV to Raise RMB 955 Mln for Network Upgrade
Shaanxi Broadcast, 6/16/15
Ad agency services provider and cable TV network operator Shaanxi Broadcast & TV Network Intermediary (600831.SH) has announced a plan to raise up to RMB 955 mln through a private offering of 52.44 mln newly issued shares priced at RMB 18.21 per share to five designated investors. Shanghai Oriental Pearl New Media (600637.SH) has offered to buy 19.49 mln shares for RMB 355 mln to take a 3.17% stake, while Beijing-based Tsinghua Tongfang (600100.SH) has offered RMB 300 mln for 16.47 mln shares and a 2.67% stake.
Shaanxi Broadcast plans to use RMB 693 mln to build a next-generation broadcast television network, including an upgraded platform, and improvements to city networks and terminals.
The other RMB 262 mln will be used to repay bank debts. As of the end of March 2015, Shaanxi Broadcast had a debt-to-assets ratio of 63.14%. With the issuing of the shares and repayment of debts, that ratio will drop to approximately 51%.
Shaanxi Broadcast will also sign a framework of strategic cooperation with Shanghai Oriental Pearl, under which the two companies will partner on copyrights, digital pay channels, cable television interactive ordering, and internet TV. In terms of platforms, both companies will exploit their advantages to promote DVB+OTT.
Keywords: M&A financing television Oriental Pearl Shaanxi Broadcast & TV Network Intermediary Tsinghua Tongfang 600100.SH 600637.SH 600831.SH broadcasting cable TV
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