Phoenix Media intends to buy children's book manufacturer in 80 million dollars

Phoenix Media (601928) May 13 Evening announcement, May 13, the company's wholly-owned subsidiary of Jiangsu Phoenix Education Press Co., Ltd. and Publications International, Ltd., JRS Distribution Co., PiL Illinois LTD., PiL l.l.c., Publications International, L.P., Publications International Limited Partnership, PIL Publications IBERIA,S.L. (hereinafter referred to as "PiL Spain" with PiL, JRS, PiL Illinois, PiL l.l.c, PiL UK and PIL Australia, collectively "the seller") and the seller's actual controller, Mr. Louis Weber, signed the Asset purchase agreement, to determine the Phoenix education for 80 million dollars in cash acquisition of all the children's business assets owned by the seller and its overseas subsidiaries in Germany, France, Mexico, 100% of the equity and equity. The acquisition does not constitute a related transaction and does not constitute a major asset reorganization under the reorganization measures. PIL is a company registered in the United States Illinois State, founded in 1967, mainly engaged in children's books, cooking books and general interest (including popular science) books, the development, editing, publishing and sales. JRS is a registered Illinois State company in the United States, which mainly holds assets related to the child book business, including the inventory of children's books and accounts receivable. PiL Illinois and PiL L.L.C. are registered in the United States Illinois State Company. The two companies jointly hold 100% of the shares and interests of 4 subsidiaries in Germany, France and Mexico, which carry out child book sales in their respective locations. PiL UK, PiL Australia and PIL Spain are registered in the UK, Australia and Spain respectively, and are responsible for the sale of children's books in the UK, Australia and Spain respectively. Mr Webb is the founder and controlling shareholder of PIL and the incumbent president and chief executive of PiL. Mr Weber is the actual controller of the subject matter of the transaction. The company said that the transaction is the world's leading children's book manufacturer, its products are not traditional paper publishing, but the sound of children's books and early education combined with the pan-cultural products, the Phoenix Media existing business has formed a beneficial supplement and extension, with the company has a strong synergy effect. The acquisition will help expand the company's industrial chain, enhance the company's children's book publishing business strength, in line with the company to create world-class publishing group development strategy. As the products of the subject matter are mainly produced in China, their products have not entered the Asian and South American market, relying on the company's rich domestic brands, channels, experience and other resources, transactions can effectively reduce procurement costs,Open markets such as Asia that have not yet entered the market, thereby boosting revenue and increasing profitability. At the same time, the acquisition is also the Phoenix media overseas expansion of an important move. Through this acquisition, the Phoenix Media will gain international children's book assets and sales channels, is conducive to the rapid penetration of the international mainstream publishing market, and quickly grasp the excellent international distribution channel resources for the company to practice outward cooperation strategy, and intensify the promotion of cultural industry "go out" further laid a solid foundation. The transaction on its scale is China's publishing industry's largest ever cross-border mergers and acquisitions, the Phoenix media accumulation of international mergers and acquisitions experience, become the world's publishing industry has an important role in promoting the international status of China's cultural industries has an immeasurable significance. In view of the importance of the project, the company will be very likely to obtain national, Jiangsu province related to cultural industry funds to support a greater degree, so as to reduce the cost of mergers and acquisitions, improve the level of investment income. The deal was priced at $80 million trillion, with the 2014-year earnings of the transaction being expected to combine net profit of 5.87 million dollars by about 13.63 times times. Total investment of about 85 million dollars, delivery to the Phoenix media net worth of about 46 million dollars. Without regard to policy support, the target of the 2014-2018 fiscal year is expected to consolidate net profit of about 587, 632, 715, 804, 8.97 million U.S. dollars, the project's own capital investment profit margin of 14.68%, 15.81%, 17.87%, 20.1%, 22.43%, The total investment returns were 6.91%, 7.44%, 8.41%, 9.46% and 10.55% respectively.