China Digital TV Holding Co., Ltd. (NYSE: STV) said it has reached a framework agreement with Cinda Investment Co. Ltd., a subsidiary of China Cinda Asset Management Co., Ltd., regarding an asset restructuring.
Under the terms of the agreement, China Digital TV plans to inject its CA, Network Broadcasting Platform and Video on Demand businesses into Shanghai Tongda Venture Capital Co., Ltd., a company controlled by Cinda Investment. In exchange, China Digital TV will acquire a controlling stake in Tongda Venture and receive RMB1.15bn in cash from Tongda Venture. China Digital TV expects to consolidate Tongda Venture financially upon completion of the Restructuring.
According to the agreement, China Digital TV will grant warrants of between USD25m and USD30m to Cinda Investment. The completion of the restructuring under the framework agreement is a precondition to the exercising of the warrants by Cinda Investment.
Founded in 2004, China Digital TV is the provider of CA systems and comprehensive services to China´s expanding digital television market. Its website is at http://ir.chinadtv.cn.
Cinda Investment Co. Ltd is an integrated investment company incorporating alternative asset management, investment and operations in capital markets, real estate, commercial property and hotels
Shanghai Tongda Venture Capital Co., Ltd. was founded in 1992 and is listed on the Shanghai Stock Exchange. Cinda Investment Co. Ltd. is currently Tongda Venture´s largest shareholder. Shanghai Tongda´s business covers high- and new-technology investment, industrial investment and asset management, agricultural development, operation and domestic trade, and food production and sales.