Contemporary Oriental plans to acquire 100% equity of Yongle Film and Television for 2.55 billion yuan

Contemporary Oriental announced on the evening of July 16 that it plans to issue 213 million shares at a price of 11.96 yuan/share and purchase 100% equity of Yongle Film and Television at a price of 2.55 billion yuan.

Original title: Contemporary Oriental plans to acquire Yongle Film and Television

Contemporary Oriental announced on the evening of July 16 that it plans to issue 213 million shares at a price of 11.96 yuan/share and purchase 100% equity of Yongle Film and Television at a price of 2.55 billion yuan.

Among the shareholders of Yongle Film and Television, Cheng Lidong, Zhang Hui, Nanjing Snowman and Ningbo Haowang bear performance compensation liability, while Beijing Fengshi and other 13 shareholders do not bear performance compensation liability. Cheng Lidong, Zhang Hui, Nanjing Snowman and Ningbo Haowang hold a 75.03% stake in Yongle Film and Television at a price of no more than 1.976 billion yuan; Beijing Fengshi and other 13 shareholders hold a 24.97% stake in Yongle Film and Television at a price of no more than 574 million yuan.

In terms of performance commitments, Yongle Film and Television's net profit from 2017 to 2020 will not be less than 215 million yuan, 295 million yuan, 365 million yuan, and 420 million yuan respectively. Bear the responsibility for recovering all accounts receivable at the end of the third year of the performance commitment period of the target company.

Before this transaction, Wang Chunfang controlled 38.26% of the company's equity and was the actual controller. After the transaction was completed, Wang Chunfang controlled 30.16% of the company's equity and remained the actual controller. Cheng Lidong, Zhang Hui and Nanjing Snowman are acting in concert and will hold 143 million shares of the company after the transaction is completed.

Financial data shows that Yongle Film and Television's unaudited operating income from January to June 2017, 2016 and 2015 was 189 million yuan, 477 million yuan and 504 million yuan respectively; net profits were 65.9518 million yuan, 126 million yuan and 145 million yuan respectively.

The estimated 100% equity value of Yongle Film and Television in this transaction is approximately 2.55 billion yuan, an increase of 1.82 billion yuan or 249.49% from its unaudited net asset book value of 730 million yuan.

Contemporary Oriental stated that after the completion of this transaction, the scale of the film and television works production and distribution business will further expand, and the synergy between the content sector and the channel sector will be enhanced.

Editor: Mary