The management buy-out occurring at Beijing-based – but Nasdaq listed – China Digital TV is moving forward.
A statement says that the buy-out has paid RMB (Yuan) 610 million (about €83 million) in accordance with the Equity Transfer Agreement signed in November 2016. The new entity (Changxing Bao Li Rui Xin Technology Co., Ltd/the Buyer) has also been approved by the Beijing Administration for Industry & Commerce.
“Pursuant to the [agreement], the Buyer is required to proceed with the procedures for converting the RMB610 million into US dollars and paying such converted amount to an offshore account designated by Golden Benefit (the selling company), as soon as possible but in any event no later than September 30, 2017. Until the completion of the currency exchange and payment, the amount is required to be held in the onshore account of the Company’s Chinese affiliate.
The statement also cautions that the transaction is subject to certain conditions precedent, including the approval required under policies of the State Administration of Foreign Exchange. There is no assurance that all conditions precedent to the Closing will be satisfied or waived.
“Founded in 2004, China Digital TV enables television network operators to manage, extend and diversify content services across households and public areas in China. China Digital TV is the leading provider of cloud-based application platforms to Chinese cable operators, helping them to effectively bring mobile gaming apps and other entertainment options to household television sets, and extend cable programming outside the home to any mobile device. China Digital TV is also the leading provider of Conditional Access (“CA”) systems in China’s digital television market. CA systems enable television network operators to secure the delivery of content to their subscribers. The Company has existing cooperation with nearly all of China’s cable television operators.”