Chengdu Dr. Peng Telecom and Media Group (600804) plans to acquire the remaining 50 percent stake in Great Wall Broadband Network, a provider of broadband Internet access services, for 750 million yuan, reported Yicai yesterday, citing a company filing on April 20.

Due to the high cost of market development, Great Wall Broadband recorded audited net assets of negative 119.66 million yuan, total liabilities of 3.01 billion yuan, and an asset-liability ratio of 104.14 percent at the end of 2011, according to the report.

Great Wall Broadband is a profitable company, recording net profit of 11.56 million yuan in 2010, and 80.76 million yuan in 2011.

According to data, Great Wall Broadband Network’s network covers 14 million users in 30 large and medium-sized cities.

Dr. Peng Telecom and Media acquired a 50 pecent stake in the target company in June 2010 for 320 million yuan, and injected 550 million yuan for the repayment of bank loans.

Dr. Peng Telecom and Media posted a 3.62 percent year-on-year rise in 2011 net profit to 157 million yuan, while revenue increased 25.17 percent to 2.204 billion yuan. Earnings per share hit 0.12 yuan.

Source:capitalvue