Wasu Digital Television Media to Buy Stake in China Cable Network
Shenzhen Stock Exchange, 11/20/12
In a public filing today, Zhejiang-based DTV and IPTV operator Wasu Media Holding (000156.SZ) announced that its controlling shareholder Wasu Digital Television Media Group has signed equity transfer agreements with Shanghai Zhongguang Sitong Media Investment (unofficial translation) and the Stone Group Corporation, in accordance with the requirements of Zhejiang's "one province, one network" integration plans, to acquire the two companies' shares in China Cable Network. China Cable Network operates cable networks in Wenzhou, Shaoxing, Zhoushan, and other cities in Zhejiang.
Zhongguang Sitong currently holds a 31.8% stake in China Cable Network. Under the terms of the agreement reached by Zhongguang Sitong with China Cable Network and its other shareholders, the RMB 226 mln in outstanding China Cable Network debt held by Zhongguang Sitong and affiliated parties may be exchanged for a 41.68% share of China Cable Network through a debt-equity swap. The Stone Group Corporation holds a 1.5% stake in China Cable Network.
Wasu, Zhongguang Sitong, and the Stone Group Corporation will sign a more detailed formal agreement for the China Cable Network equity transfer deal by December 31, 2012.
Editor's Note: For more background on this topic, please see "Wasu to Consolidate Wenzhou Cable TV Networks" MD 6/04/12 issue.
Keywords: investment China Cable DTV Zhejiang Stone Group Wasu 000156.SZ Wasu Media Holding consolidation M&A television
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