LeTV to Acquire Flower Film & TV, LeTV New Media
Shenzhen Stock Exchange, 9/30/13
Online video and Internet TV content provider LeTV (Leshi) (300104.SZ) has announced that the company will acquire a 100% stake in Zhejiang-based film and TV production company Flower Film and TV Culture, as well as a 99.5% stake in Tianjin-based digital media products developer LeTV New Media Culture. The purchases will be conducted through a mix of cash and stock for a total value of RMB 1.59 bln. Flower Film and LeTV New Media Culture are valued at RMB 900 mln and RMB 300 mln, respectively.
Flower Film recorded annual profits of more than RMB 41.70 mln and RMB 128.13 mln in 2011 and 2012, respectively. The company achieved a profit of more than RMB 60.17 mln between January and June of this year.
LeTV plans to issue as many as 15.01 mln shares in a non-public offering to less than 10 investors to raise approximately RMB 400 mln in funds. Of this amount, RMB 270 mln will be used to fund a portion of the company's recent acquisitions, with the remainder to be used for business structuring following the purchases as well as to bolster company liquidity.
Editor's Note: For more background on this topic, please see "Le Vision Pictures Denies Flower Film & TV Acquisition" MD 9/26/13 issue.
Keywords: LeTV New Media Culture television LeTV 300104.SZ Leshi Flower Film and TV Culture M&A TV content production film production
Sending
