Comprehensive M&A data with integrated detailed company information
Cultural Investment to purchase television producers
Posted on Wednesday, 06 December 2017 08:03
Cultural Investment Holdings is acquiring Chinese television programme producers Rinx Culture Media (Rinx) and Beijing Yuekai Television Media (Yuekai) for a combined CNY 2.37 billion (USD 358.18 million).
As consideration, the buyer is paying CNY 711.00 million in cash and CNY 659.00 million-worth of shares.
Yuekai’s nine shareholders include Shanghai Jiancheng Enterprise Management Centre and Shanghai Guitang Enterprise Management Centre, both of which own a collective stake of 53.8 per cent.
Rinx is currently controlled by private equity firm Tibet Lianchuang Yongyuan Equity Investment and ten other parties.
According to Zephyr, the M&A database published by Bureau van Dijk, this is Cultural Investment’s largest acquisition announced to date.
In order to fund the deal, the buyer has concurrently announced a private placing to raise up to CNY 1.59 billion, which accounts for 3.5 per cent of its enlarged capital, from no more than ten subscribers.
Listed on the Shanghai Stock Exchange, Cultural Investment develops and operates online games, and is engaged in the film business, which includes picture screenings and television programme production.
Largely driven by its box office successes, the buyer posted revenue of CNY 1.28 billion in the six months ended 30th June 2017, up 49.6 per cent on the CNY 853.22 million recorded during the same timeframe in the previous year.
Similarly, net profit for the period totalled CNY 350.36 million, compared to CNY 241.39 million in H1 2016.
By carrying out the deal, Cultural Investment is hoping to expand its production capacity and screenwriting operations as it seeks to double down on the rapidly growing television drama sector.
The announcement comes barely a year after the acquiror, along with other investors, snapped up 75.0 per cent of UK-based tele-production services provider Framestore for around GBP 150.00 million.
© Zephus Ltd