Of interest:
Hunan broadcaster may become first in mainland China to list content-related assets
Shanghai. September 23. INTERFAX-CHINA - Golden Eagle Broadcasting System (GBS), the sole TV broadcaster in Hunan Province, will insert core businesses into its Shenzhen-listed arm Hunan TV & Broadcast Intermediary Co. Ltd. (TIK), an official with Hunan TV said on Sept. 22, a move which would make it the first TV company in mainland China to publicly list content-related assets.
"GBS will insert competitive core businesses into TIK, which will be a milestone for GBS's future development," Zhang Huali, deputy director of Hunan TV, said in a statement on Sept. 22. However, he said no further details could be revealed.
Earlier that same day, TIK announced the suspension of the trading of its shares. The company said it was in talks with an unspecified company over acquiring assets through a private equity placement.
"GBS is very likely to insert content production and advertising
divisions into the listed arm," Xu Yaowen, a media analyst with Galaxy Securities, told Interfax.
"The assets to be inserted into TIK will possibly include divisions that produce content for GBS's brand channels, its entertainment channel and its cartoon channel, and its subsidiary, Shanghai EE-Media Co. Ltd.,"said Xu. "However,the content production division for GBS's news channel will not be considered, due to the Chinese government's tight control over news-related content,which means such assets cannot be listed."
However, GBS's plan still needs to be approved by several government organs, including the Propaganda Department of the Communist Party of China, the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, the State Administration of Radio,Film and Television (SARFT), and the China Securities Regulatory Commission (CSRC), according to Xu.
"It remains uncertain whether the proposal will be approved.If it does,GBS will be the first TV broadcaster in mainland China that has content-related assets listed on a stock market," Xu said. "GBS has so far obtained support from SARFT's local broadcasting regulatory branch,the Hunan Provincial Broadcasting Bureau."
According to TIK's announcement, the suspension of its share trading will last one month, during which time the transaction plan will be decided.
GBS is one of China's largest TV broadcasters with the highest viewing figures. Its programs "Super Girls" and "Super Boys" are well-known across the country.
-HJL
http://www.interfax.com/4/430280/news.aspx