HONG KONG, Feb. 23, 2011 /PRNewswire-Asia/ -- Media China Corporation Limited (“Media China” or the “Company”, together with its subsidiaries collectively referred to as the “Group”) (Stock Code: 00419.HK) is pleased to announce today that the Company has entered into a conditional agreement with an independent party for the acquisition of the entire interest in Smart Title Limited, which indirectly owns the operating right of Bayhood No. 9 Club in Beijing, at a consideration of HK$500 million. This transaction will reinforce the Group’s tourism business in Mainland China, enabling it to capture the tremendous opportunities arising in the sector.
According to the conditional agreement, the Company will settle the consideration of HK$395 million in cash, with the remaining HK$105 million to be settled through the issue of new shares at an issue price of HK$0.035 per share, which represents a premium of approximately 2.94% over the closing price of the stock immediately before the suspension of trading. Application has been made by the Company for resumption of trading in the Shares with effect from 9:30 a.m. on February 23, 2011.
Bayhood No. 9 Club, located near the city center of Beijing, is a membership-based luxury club which is comprised of business hotel facilities, an 18-hole golf course, driving range facilities, theme restaurants and cafes, spa facilities, retail shops, and the first PGA branded and managed golf academy in Asia. It commenced operation in 2006 and has achieved continuous growth in revenue and profit over the past three years. Unaudited revenue and net profit after tax for the first 10 months in 2010 were approximately RMB125 million and RMB41 million respectively. The vendor has provided an indemnity that the audited net profit after tax of Smart Title Limited and its subsidiaries shall not be less than RMB80 million in aggregate for the years 2011 and 2012.
Mr. Yuen Hoi Po, Chairman of Media China, said, “China has vigorously promoted the development of the tourism sector in recent years. Annual revenue of the tourism industry is projected to grow by 12% during the period of the Twelfth Five-year Plan. As income of Chinese households increases, the travel patterns of domestic tourists have shifted from sightseeing to leisure travelling, creating new business opportunities in the tourism sector. As we are planning to expand into culture and tourist operations, the acquisition of Bayhood No. 9 will help us to seize considerable opportunities in the sector and boost our revenue base and profitability. Moreover, the experience gained from operating Bayhood No. 9 will be valuable to us for expansion into other travel-related businesses. We are confident that the project will enhance investment returns for both of the Group and our shareholders.”
The acquisition is subject to the satisfaction of the conditions precedent as set out in the sale and purchase agreement and the approval of Media China’s shareholders.
About Media China Corporation Limited
Media China Corporation Limited (Stock Code: 00419.HK) is a leading media group, satellite channel operator and entertainment content provider in China. As a media company with one of the largest libraries of films, TV comedies and dramas, Media China is engaged in various media related businesses in China, including consolidation and sale of advertising resources, and the production of television programmes, advertisements, television dramas and movies. Media China also targets to expand its business into cultural and tourism sectors. For more details, please refer to its website: www.mediachina-corp.com.
For more information, please contact:
Media China Corporation Limited
Raymond Hau
Tel: +852-2877-8412
Email: raymondhau@mediachina-corp.com
PRChina Limited
Henry Chik
Tel: +852-2522-1838
Email: hchik@prchina.com.hk
David Shiu
Tel: +852-2522-1368
Email: dshiu@prchina.com.hk
