Enlight Media, 3/12/18
Beijing-based TV and film investment, production, and distribution company Enlight Media (300251.SZ) recently announced that it has signed a share transfer agreement with Linzhi Tencent Technology, a subsidiary of Chinese internet conglomerate Tencent (0700.HK), to transfer its entire 27.64% stake in Beijing-based New Classics Media to Tencent for a total consideration of RMB 3.317 bln. Following the transaction, Enlight Media will no longer hold any New Classics Media shares.
Linzhi Tencent is a wholly-controlled subsidiary of Tencent Industry Fund.
Enlight Media was previously the second-largest shareholder of New Classics Media. It acquired a 27.64% stake in New Classics Media for RMB 829 mln in October 2013. Enlight Media said that it will make a RMB 2.266 bln pre-tax profit off of the current transaction.
New Classics Media's operating revenues reached RMB 1.67 bln in 2017 and net profits were RMB 349 mln.
Media outlet National Business Daily previously reported that New Classics Media was in the process of applying for an IPO. However, Cao Huayi, chairman at New Classics Media, subsequently told reporters that the company has abandoned its IPO plans.
Editor's Note: New Classics Media was founded in 2007 as a domestic film/TV production and distribution company. For more information on this topic, please see Enlight Media Takes 27.6% Stake in New Classics Media, MD 10/30/13 issue.