CSRC Approves Hubei Broadcasting Group Backdoor Listing
21st Century Business Herald, 6/14/12
On June 13, the Wuhan Plastics Industrial Group (000665.SZ) announced in a public filing that the Hubei Broadcasting Group had received approval from the China Securities Regulatory Commission (CSRC) to list via a restructuring of its shell company Wuhan Plastics.
Following the restructuring, Hubei Broadcasting Group will become the actual controlling shareholder of Wuhan Plastics. The group's subsidiaries Hubei Chutian DTV, Hubei Chutian Jinwei Radio & TV Information Network, and Chutian Xiangfan Cable TV will hold 20.92%, 10.3%, and 6.53% of the company, respectively, for a combined total of 37.75% of the company. Wuhan Digital TV Network will hold 14.4% of the company. The listed company will become the market entity in which Hubei province's networks are integrated, giving it cable network assets in 11 cities including Wuhan, Xiangfan, and Jingzhou. There were 9.85 mln cable television subscriber householder in Hubei province in 2011, and network integration efforts have already begun for 37.18% of these.
An industry insider revealed that the two-year delay in receiving restructuring plan approval from the CSRC had been due to insufficient changes to the structure of Wuhan Plastics (transforming it from a business work unit to an enterprise) and inappropriate actions taken by some members of senior management during the restructuring.
Editor's Note: For more background on this topic, please see "Wuhan Plastic Transfers 23% Stake to Chutian DTV" MD 11/29/10 issue.
Keywords: corporate restructuring television Wuhan Digital TV Network DTV Hubei Chutian DTV cable TV CSRC listing Xiangfan Cable Hubei Chutian Wuhan Plastics Chutian Jinwei Hubei Broadcasting Group
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