HONG KONG, 5. Sept, 2011 /PRNewswire-Asia/ -- China Oriental Culture Group Limited (the "Company" or China Oriental Culture", stock code: 2371) is pleased to announce that the Company has entered into Memorandum of Understanding (the "MOU") on 2nd September 2011. Under the MOU, the Company intends to effectively acquire (by itself or through its wholly-owned subsidiary (ies)) (i) the exclusive entitlement to 49% of the economic benefits derived from Hunan Mobile TV and the rights to manage and operate Hunan Mobile TV; and (ii) 95% equity interest in Beijing Jiahua of Qingda Tech, with a total consideration of no more than HK$1.3638 billion.
Among the total consideration, HK$1,333,800,000 to be satisfied by the allotment and issue of a total of 2,600,000,000 Consideration Shares at the issue price of HK$0.513 each (which represents a 10% discount to the closing price of the Shares as quoted on the Stock Exchange on the date of signing of the MOU) on the closing of the Possible Acquisition; and HK$30,000,000 to be paid in cash within six months after the closing of the Possible Acquisition.
Hunan Mobile TV is principally engaged in the building, development, operation and management of mobile television network, the provision of broadcast TV programs, the transmission of multi-media information and the production, publication, transmission, use and management of television advertisement. Beijing Jiahua is principally engaged in the development and promotion of arts and culture related activities in the PRC.
Commenting on the MOU, Mr. Li Qing, Executive Director of the Company, said "The Possible Acquisition, if materialized, will expand the Company's outdoor advertising and TV drama production businesses in the PRC. The Possible Acquisition is also a step forward for the Group's development of its cross-media platform. With the leadership development of the core businesses of the Group of outdoor advertising and TV drama production, all other media businesses under the Group's cross-media platform will benefit from this unique synergy.
The Possible Acquisition (if consummated) would provide an excellent opportunity to widen the Group's income stream and generate better revenues and profits for the Group."
China Oriental Culture Group Limited
The Group is principally engaged in the provision of advertising and consultancy services in respect of placing advertisements on the outdoor billboards and LED screens of the Group to advertisers and advertising agencies.