China Oriental Culture acquires interests of Hunan Mobile TV and Beijing Jiahua
Louise Duffy ©RapidTVNews | 25-11-2011 Advertising consultancy China Oriental Culture Group has confirmed the memorandum of understanding signed in September 2011 in which it will acquire the shares owned by Qingda Tech in Hunan Mobile TV and Beijing Jiahua.
China Oriental will acquire the effective interests of 49% in Hunan Mobile TV and 95% in Beijing Jiahua in a transaction valued at HK$876 million.
Hunan Mobile TV is the largest operator of China's terrestrial digital television network at the provincial level, with household subscribers amounting to about 300,000. It is principally engaged in the building, development and operation of wireless mobile television network, the transmission of multimedia information and the production, publication, transmission, use and management of television advertisements.
Due to the low investment costs required for establishing its wireless network, it is suitable for rural areas where construction and maintenance costs for cable television network is relatively high. Beijing Jiahua is principally engaged in the development and promotion of arts and culture related activities in the PRC. The current activity of Beijing Jiahua is to assist the provincial television stations in the production of TV drama and TV programs.
Li Qing, executive director of China Oriental Culture Group, said: "The acquisition and the scope of business of Hunan Mobile TV would provide the company with a unique opportunity to participate in terrestrial digital television and related business activities in China with lucrative potential. The acquisition provides synergies to the group's existing capabilities in the outdoor advertising and TV drama production businesses in China, and provide an excellent opportunity for the group to expand its cross-media platform."