AllBright Client Elex Acquired by Chinese Media
2014-12-047263On November 26, 2014, Chinese Universe Publishing and Media Co., Ltd. (stock code: 600373.SH) won the China Securities Regulatory Commission’s unconditional approval for its asset acquisition and related fund raising application.
Chinese Media will, through paying cash and issuing shares, purchase 100% ownership of AllBright client Elex Technology Co., Ltd. at a price of 2.66 billion RMB, of which 62% will be paid in stock and 38% in cash. Chinese Media will raise 886 million RMB through a private placement to no more than 10 designated investors as part of the cash payment.
Chinese Media, whose main business is traditional publishing and media operations, is a Fortune 500 China company. Elex Technology is a Chinese Internet gaming platform provider targeting the global market, which owns 50 million monthly active users. This deal is Chinese Media’s strategic move to strengthen its new media business and expand into the international market. This was also one of the largest merger and acquisition deals of the A-share market in 2014.
AllBright lawyers advised Elex Technology during the acquisition. Partner Kevin Wang and associate Ren Pingting advised Elex Technology throughout the procedure, including pre-sale due diligence investigations, internal asset restructuring, negotiating terms as well as drafting and revising Elex Technology’s application documents to the China Securities Regulatory Commission.
