Zhejiang WHWH Industry Co., Ltd. agreed to acquire Mega-info Media Co.,Ltd. from from Shenzhen Fuhai Yintao venture capital Co. Ltd, Zhou Zeliang and Lhasa Mega-info Investment Management Co., Ltd. for CNY 1.1 billion.
August 22, 2014 at 12:00 am EDT
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Zhejiang WHWH Industry Co., Ltd. (SHSE:600576) agreed to acquire Mega-info Media Co.,Ltd. from Shenzhen Fuhai Yintao Venture Capital Co. Ltd, Zhou Zeliang and Lhasa Mega-info Investment Management Co., Ltd. for CNY 1.1 billion in cash and stock on August 19, 2014. Zhejiang WHWH will pay CNY 352 in cash and the balance in 72.76 million shares. In related transactions, Zhejiang WHWH Industry Co., Ltd. agreed to acquire XTone Animation Group and Dongyang Kingrain Film & TV Culture Co., Ltd. Zhejiang WHWH Industry Co., Ltd. will issue 99.38 million shares through private placement at a price of CNY 10.28 per share, which will be used to fund the transaction.
The Board of Zhejiang WHWH Industry Co., Ltd. approved the deal. As of September 29, 2014 and April 29, 2015, the transaction was approved by shareholders of Zhejiang WHWH Industry Co., Ltd. On February 5, 2015, Zhejiang WHWH Industry Co., Ltd.'s acquisition of asset through share issuance and cash payment and raising of supporting funds and related party transaction matters is unable to obtain the approval of the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission. On March 4, 2015, China Securities Regulatory disapproved the acquisition of Mega-info Media Co.,Ltd. Zhejiang WHWH Industry's Directorate approved the transaction on March 13, 2015. On March 13, 2015, the Board of Directors of Zhejiang WHWH Industry approved the proposal of continuing to promote acquisition. As of June 11, 2015, Mergers and Acquisitions Committee of the China Securities Regulatory Commission approved the transaction.
Mega info Media Co Ltd is a China-based company principally engaged in the railway media business. The Company's main business is the development, operation and advertising of high-speed rail digital media resources. The Company's services include television video advertisements, all-in-one advertisements, and large-screen advertisements. The Company mainly operates in the domestic market.
Zhejiang WHWH Industry Co., Ltd. agreed to acquire Mega-info Media Co.,Ltd. from from Shenzhen Fuhai Yintao venture capital Co. Ltd, Zhou Zeliang and Lhasa Mega-info Investment Management Co., Ltd. for CNY 1.1 billion.