LeTV to Purchase Flower Film for RMB 900 Mln
Shenzhen Stock Exchange, 3/13/14
Chinese online video and Internet TV content provider LeTV (Leshi) (300104.SZ) announced plans today to acquire a 100% share in Zhejiang-based film and TV production company Flower Film and TV Culture for RMB 900 mln through a combination of cash and stock. Upon completion of the acquisition, LeTV CEO Liu Hong will become chairman and GM of Flower Film.
LeTV also plans to purchase an additional 99.5% stake in Tianjin-based digital media products developer LeTV New Media Culture for a price of RMB 298.5 mln through share issuances. Upon completion of the transaction, LeTV will own 100% of the company.
LeTV plans to raise an additional RMB 300 mln in cash through share issuances.
According to LeTV's release, upon completion of the acquisitions, LeTV will have recorded 2013 revenues of RMB 2.49 bln, a YoY increase of 113.86%. For the same period, LeTV is expected to record profit of RMB 230 mln, a YoY increase of 22.56%.
The acquisition of Flower Film and TV Culture is part of LeTV's content + distribution platform integration strategy.
Editor's Note: For more background on this topic, please see "LeTV Receives Approval for Flower Film Acquisition" MD 12/26/13 issue.
Keywords: film production Liu Hong profit television LeTV 300104.SZ Leshi Flower Film and TV Culture LeTV New Media Culture revenue M&A TV content production
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