Shanghai SMG System Reformed Hundred-Vision Oriental pearl suspension

Hundred-Vision and the Oriental Pearl May 28 both issued a notice said that the company is planning major matters, due to the relevant issues are still uncertain, in order to ensure fair information disclosure, safeguard the interests of investors, to avoid causing abnormal fluctuations in stock prices, the company application, the company's shares will be opened on the May 29, 2014 suspension.

According to the previous listed company announcement, March 28, Shanghai Cultural Broadcasting Film and Television Group Co., Ltd. and Shanghai Radio and television signed the "Equity transfer Agreement", SMG Group Shanghai Radio and television station held by the Oriental Media 100% stake, thereby indirectly holding a 41.92% stake in the vision. As of March 28, the SMG group holds a 45.22% per cent stake in the Oriental Pearl.

After the completion of this acquisition, the SMG Group and the company will maintain mutual asset integrity, business independence, financial independence, institutional independence and personnel independence, the company will still have independent capacity, and in the procurement, production, sales, intellectual property and other aspects of independence. The group has no other plans that have a significant impact on the business and organizational structure of the company.

However, the announcement also said that, on the basis of the transfer of shares, the following will be based on the strategic direction of the Hundred-Vision, Oriental Pearl, using resources to optimize the allocation of the means of the relevant business step-by-step to solve the related business and the adjustment of assets.

After the acquisition of the Hundred-Vision group, will not lead to competition. At the same time, in order to ensure shareholder interests, SMG Group has made a commitment to avoid competition. According to the previous announcement, the SMG Group and other enterprises under its control have not directly or indirectly operated any business which is directly competitive with the main business of the company and its affiliated companies; SMG Group Corporation undertakes that after the completion of this acquisition, The SMG Group and other enterprises under its control will still not operate directly or indirectly any business which is directly competitive with the main business of the company and its subsidiaries.

Previously, according to the Oriental Pearl of the announcement, the Oriental Pearl and Sony (China) in Shanghai FTA set up two joint ventures, responsible for production, marketing PlayStation hardware, software and provide related services in China business. The company also established a joint venture with Microsoft in the FTA, in charge of Xbox One's domestic business.

According to Sohu it understands that the Oriental Pearl, Hundred-Vision and Sony, Microsoft Joint venture company registered capital is only tens, not its main business. At the same time, because Sony and Microsoft's entertainment hardware has not yet entered China, the Pearl of the Orient and the hundred-vision is not yet the main business of direct competition.

According to the Shanghai SMG Integration Reform program, the original Shanghai Culture Broadcasting Film and Television Group (SMG Group) of the public institutions of the establishment of the system, the restructuring of the state-owned Shanghai Cultural Broadcasting Film and Television Group Co., Ltd. (SMG Group) officially operating, Shanghai Oriental Media Group Co.