SMG merged Oriental Media and radio and television development

Hundred-Vision and the Oriental Pearl last night issued a notice, said the two companies of the direct shareholders of Shanghai Radio and Film and Television Development Co., Ltd., Shanghai Oriental Media Group Co., Ltd., will be Shanghai Cultural Broadcasting Film and Television Group Co., Ltd. absorbed merged.

According to the bulletin, in order to optimize the shareholding structure of listed companies and improve the efficiency of decision-making, in October 2014, the Shanghai Municipal party committee decided to absorb the development of Oriental media and radio and television through the free transfer of SMG group. After the merger is completed, the SMG Group will hold a 41.92% per cent stake directly in the Oriental Pearl 45.24%. Hundred-Vision and the Oriental pearl of the actual control of the Shanghai state-funded committee.

After the merger, the Oriental Media and radio and television development companies will cancel the legal entity qualification. The group will promote the future development of Oriental Pearl and hundred-vision through the means of optimizing allocation of resources, and make the state-owned cultural assets bigger and stronger.

At the same time, the announcement also shows that the acquirer is planning to the hundred-vision, the Oriental Pearl implementation of the exchange of shares to absorb the merger, issue shares and pay cash to buy cultural media category of high-quality assets, raise supporting funds and other major issues. At present, the relevant intermediary agencies and the parties involved in the exchange of shares absorption merger and asset injection scheme for demonstration and determination, the relevant fund-raising program is further discussed and studied.

According to the media reports reproduced in the website of the Hundred-vision official, the reorganization of Shanghai SMG has been decided. In addition to the A-share cultural media plate in the market capitalisation ranked first second, the Oriental Pearl Company, Chang Industry, Oriental shopping, such as many of its high-quality assets will be injected, a-share first Chi culture media listed companies are about to be born. The group to absorb the merger of the Oriental Media and radio and television development of the two companies, can be considered to merge the hundred-Vision and the Oriental Pearl pave the ground.