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40% Stake in Online Literature Site Fanshu to Sell on CBEX

Sina Tech, 7/07/11

Shanghai Founder Digital Publishing Technology has announced it will sell a 40% stake in Beijing Founder Network Technology, operator of online literature portal, on the China Beijing Equity Exchange (CBEX) to raise up to RMB 47.6 mln.

Fanshu was established by Shanghai Founder Digital Publishing Technology and Beijing-based search engine provider Beijing Zhongsou Online Information Technology with a joint investment of RMB 40 mln. The company focuses on sales of e-books and its self-branded Yambook e-reader. Shanghai Founder currently owns a 60% equity in the company, with Zhongsou holding the remaining 40%.

Fanshu has set a number of conditions for the company acquiring its shares on CBEX, including that the purchaser have registered capital of no less than RMB 100 mln and net profits of no less than RMB 100 mln for 2010. The purchaser is also required to have more than five years of experience in the internet industry, to have both Network Cultural Business Operations and Advertising Operations licenses, and to have no core services related to online or digital publishing operations. The purchaser must also possess IPR related to online search technology.

Fanshu CEO Zhao Ge declined to comment on the sale.

According to the CBEX announcement, Fanshu had operating revenues of RMB 1.14 mln in 2010, with net losses of RMB 21.58 mln. In H1 2011, Fanshu had operating revenues of RMB 1.9 mln, and losses of RMB 1.14 mln.

Keywords: Shanghai Founder Digital Publishing Beijing Founder Network M&A Zhao Ge digital publishing Internet online literature Zhongsou China Beijing Equity Exchange Yambook H1 2011 profit e-book loss revenue


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