SHANGHAI, China, April 3, 2008 /Xinhua-PRNewswire/ -- Linktone Ltd. (Nasdaq: LTON), one of the leading providers of wireless interactive entertainment services to consumers and advertising services in China, today announced the successful completion of the previously-announced strategic investment by PT Media Nusantara Citra Tbk ("MNC") of Indonesia.
Pursuant to the acquisition agreement entered into by and between Linktone and MNC on November 28, 2007, MNC agreed to purchase not less than 51% of Linktone’s outstanding shares using a combination of a tender offer for existing American Depositary Shares (ADSs) and ordinary shares and a subscription for newly-issued ordinary shares. Following the successful acquisition of 6,000,000 ADSs (treating each tendered ordinary share as one-tenth of an ADS for such purposes) in the tender offer process, MNC subscribed for 180,000,000 newly-issued ordinary shares of Linktone at a purchase price of $0.38 per ordinary share. After giving effect to the subscription and the acquisition of ADSs and ordinary shares in the tender offer, MNC holds approximately 57.1% of Linktone’s total outstanding ordinary shares.
In connection with this strategic investment, as previously approved by Linktone’s shareholders at its extraordinary general meeting held on January 30, 2008, MNC’s nominees were elected to Linktone’s board of directors. Accordingly, Linktone’s board of directors is now comprised of Hary Tanoesoedibjo, Elaine La Roche, Felix Ali Chendra, Sutanto Hartono, Thomas Hubbs, Allan Kwan, Michael Li, Agus Mulyanto, Colin Sung and Jun Wu. However, Colin Sung has informed Linktone of his intention to resign from the board of directors immediately for personal reasons.
Mr. Li, Linktone’s Chief Executive Officer, commented, "The completion of the MNC investment and the increase in our cash balance by $68.4 million will enable us to aggressively implement our cross media strategy in China and other Southeast Asian markets. We anticipate a very strong and mutually beneficial relationship that helps to enhance our value to shareholders."
ABOUT LINKTONE LTD.
Linktone Ltd. is one of the leading providers of wireless interactive entertainment services to consumers and advertising services to enterprises in China. Linktone provides a diverse portfolio of services to wireless consumers and corporate customers, with a particular focus on media, entertainment and communications. These services are promoted through the Company’s and our partners’ cross-media platform which merges traditional and new media marketing channels, and through the networks of the mobile operators in China. Through in-house development and alliances with international and local branded content partners, the Company develops, aggregates, and distributes innovative and engaging products to maximize the breadth, quality and diversity of its offerings.
ABOUT MEDIA NUSANTARA CITRA TBK
MNC is the largest and only integrated media company in Indonesia with operations encompassing content production, content distribution, nationwide free-to-air television networks, 24-hour program TV channels, newspaper, tabloid, radio networks and online media. MNC has the largest content library in Indonesia, comprising 68,000 hours of entertainment and news content, which is increasing by more than 10,000 hours yearly. These contents are being accumulated from in-house production, outsourcing and the operations of our multi-media platforms.
FORWARD-LOOKING STATEMENTS
This press release contains statements of a forward-looking nature based on the current expectations of Linktone Ltd. with respect to future events and are made only as of the date of publication. These forward-looking statements can be identified by words such as "intends," "expects," "will," "believes" and similar expressions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties includes: the risk that Linktone will not be able to locate and retain suitable people for its board of directors and middle and senior management; current or future changes in the policies of the PRC Ministry of Information Industry and the mobile operators in China or in the manner in which the operators enforce such policies; the risk that other changes in Chinese laws and regulations, or in application thereof by other relevant PRC governmental authorities, could adversely affect Linktone’s financial condition and results of operations; the risk that Linktone will not be able to compete effectively in the wireless value-added services market in China for whatever reason, including competition from other service providers or penalties or suspensions for violations of the policies of the mobile operators in China; the risk that Linktone will not be able to develop and effectively market innovative services; and the risk that Linktone will not be able to effectively control its operating expenses in future periods or make expenditures that effectively differentiate Linktone’s services and brand. For additional information on factors that could cause Linktone’s actual results to differ from expectations reflected in these forward-looking statements, please see Linktone’s filings with the Securities and Exchange Commission, including its registration statement on Form F-1 and annual report on Form 20-F. Except as required under applicable law, Linktone expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement included in this document to reflect any changes in expectations with regard thereto or any changes in events, conditions, or circumstances on which any statement is based.
For more information, please contact:
Brandi Piacente
The Piacente Group, Inc.
Tel: +1-212-481-2050
Email: brandi@thepiacentegroup.com
Web: http://www.linktone.com
