MOC to Establish China Animation Group
Eastday.com, 8/27/09
A source inside China's Ministry of Culture (MOC) has revealed that the Ministry is in the process of spinning off a portion of resources to form the China Animation Group, however an official date for establishment has not yet been determined. The source said that the Ministry began considering spinning off four divisions late last year to be restructured with additional outside capital. Information on MOC's website indicates that there are 31 units under direct control by the Ministry, and the four units that will be split off all have their own lines of business and definite operational responsibilities prior to restructuring.
As per the State Council's request, MOC has decided to reorganize the 4 units into a shareholding company, to enforce strict separation between business and political interests, and to make the company directly responsible for its own profit and loss. The new enterprise is to be officially named China Animation Group Co. According to industry sources, China Mobile (NYSE: CHL; 0941.HK) is currently in preliminary negotiation with the MOC to participate in restructuring the units. China Unicom (NYSE: CHU; 0762.HK; 600050.SH) has also sent a delegation to meet with the MOC to discuss investment in the new company.
Keywords: China Mobile China Unicom Internet animation Ministry of Culture State Council CHL 0762.HK 0941.HK 600050.SH CHU
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