SMG asset revamp to list new media unit
By Ding Yining |
January 13, 2011, Thursday
|
Print Edition
Print Edition
SHANGHAI Media Group, the city's media conglomerate, will let list its new media unit via an asset restructuring with Shanghai-listed SVA Information Industry.
SMG will purchase a 36.6 percent stake in SVA Information Industry for 1.99 billion yuan (US$301 million) in cash, or 7.67 yuan per share, to become the biggest shareholder of SVA with a total of 41.6 percent.
SVA will sell its primary and non-primary business assets to Shanghai Electronics Development Holdings (Group) for 3.2 billion yuan.
SVA will also acquire SMG's new media subsidiaries, BesTV and Shanghai Radio, Film & TV Production Co Ltd, through a private placement for 1.22 billion yuan in cash. The takeover is valued at 4.3 billion yuan.
Shares of SVA Information Industry surged by the daily limit of 10 percent for the second day to close at 10.14 yuan yesterday. Its shares were earlier suspended from trading for four months.
Citic Securities put a "buy" on SVA whose profit is estimated at around 230 million yuan to 250 million yuan in 2010.
"The restructuring will put SMG in a better position to provide news service in the new media arena and the stock (SVA) price could climb to 12 to 15 yuan in the mid- to long-term," analyst Pi Shun at Citic Securities wrote in a report yesterday.
The restructuring plan is still subject to approval from the securities watchdog and the State-owned Assets Supervision and Administration Commission.
SMG will purchase a 36.6 percent stake in SVA Information Industry for 1.99 billion yuan (US$301 million) in cash, or 7.67 yuan per share, to become the biggest shareholder of SVA with a total of 41.6 percent.
SVA will sell its primary and non-primary business assets to Shanghai Electronics Development Holdings (Group) for 3.2 billion yuan.
SVA will also acquire SMG's new media subsidiaries, BesTV and Shanghai Radio, Film & TV Production Co Ltd, through a private placement for 1.22 billion yuan in cash. The takeover is valued at 4.3 billion yuan.
Shares of SVA Information Industry surged by the daily limit of 10 percent for the second day to close at 10.14 yuan yesterday. Its shares were earlier suspended from trading for four months.
Citic Securities put a "buy" on SVA whose profit is estimated at around 230 million yuan to 250 million yuan in 2010.
"The restructuring will put SMG in a better position to provide news service in the new media arena and the stock (SVA) price could climb to 12 to 15 yuan in the mid- to long-term," analyst Pi Shun at Citic Securities wrote in a report yesterday.
The restructuring plan is still subject to approval from the securities watchdog and the State-owned Assets Supervision and Administration Commission.
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