Update: SMEG to Merge BesTV and Shanghai Oriental Pearl
21st Century Business Herald, 9/18/14
Chinese media company Shanghai Media & Entertainment Group (SMEG) has announced that the company will merge two of its subsidiary companies, TV service operator BesTV New Media (600637.SH) and media company Shanghai Oriental Pearl Group (600832.SH), as well as carry out a non-public share issuance for the newly merged company.
The new company will reportedly raise nearly RMB 10 bln to purchase a handful of companies currently operated by SMEG subsidiary Shanghai Media Group, including SMG Pictures, Oriental CJ, Wings Media and Shanghai Interactive TV.
Upon completion of the merger, the new company may also seek a strategic investment from Chinese internet giants Baidu (Nasdaq: BIDU), Alibaba, or Tencent (0700.HK) totaling more than RMB 1 bln. Negotiations between SMEG and the three companies are reportedly still underway.
BesTV and Shanghai Oriental Pearl both announced on September 16 that the companies would halt trading of their shares in order to undergo a merger.
Editor's Note: For more background on this topic, please see "Rumor: SMEG to Merge BesTV and Shanghai Oriental Pearl" MD 9/03/14 issue.
Keywords: SMEG television Oriental CJ Oriental Pearl Baidu Tencent BesTV 0700.HK 600637.SH BIDU 600832.SH M&A Alibaba Group financing Shanghai Media Group
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