Xinhua Media announced on the evening of September 7 that it intends to acquire a controlling stake in Shanghai Interface Cailianshe Technology Co., Ltd. through a share issuance, which is expected to constitute a major asset restructuring but not a restructuring and listing. The transaction constitutes a related-party transaction, and the counterparties are preliminarily determined to be entities including Shanghai United Media Group Cultural New Media Investment Management Co., Ltd., a wholly-owned subsidiary of the controlling shareholder Shanghai United Media Group. Xinhua Media has been suspended from trading since the market opened on September 7 and will remain suspended from the market open on September 8, with the cumulative suspension period expected not to exceed 10 trading days. The company has signed a letter of intent for asset purchase with the major shareholders of the target company, and the final price will be determined through negotiation based on the appraisal results. The transaction is still in the planning stage and is subject to uncertainty.
Shanghai Xinhua Media Co LtdXinhua Media plans to acquire a controlling stake in Shanghai Interface Cailianshe via share issuance, a major asset restructuring that keeps its shares suspended and is still subject to uncertainty.
Shanghai Interface Cailianshe Technology is the target whose controlling stake is to be acquired, with price still to be negotiated and the deal uncertain.
This wholly-owned subsidiary of the controlling shareholder is preliminarily named as a counterparty selling the Interface Cailianshe stake in the share-issuance deal.
Shanghai United Media Group is the controlling shareholder whose wholly-owned subsidiary is among the counterparties in the related-party restructuring.
