CHANGJIANG MEDIA BEGINS FLOATING ON SHSE

AsiaInfo Services
03-15-2011
Changjiang Media Begins Floating on SHSE

SHANGHAI, Mar 15, 2011 (SinoCast Daily Business Beat via COMTEX) -- Chinese publisher Hubei Changjiang Press Group Co., Ltd. (Changjiang Media) begins flowing on the Shanghai Stock Exchange from today with ticker symbol 600757, marking its success in getting listed on the bourse through shell company Shanghai Worldbest Industry Development Co., Ltd.

Shanghai Sharm Home Textile Co., Ltd., the creditor of Shanghai Worldbest Industry Development, applied to a count in Shanghai for shutting down the Shanghai-listed company in 2010 due to the target's loss-making operation in 2008 and 2009 as well as the continuously worsened operation in 2010. And on November 12 last year, the target held a meeting for creditors and promoters each for the second time and on the two meetings, it gained approval for its consolidation plan draft and promoters' equity change plan.

In the meantime, Changjiang Media acquired about 190.13 million shares of the company from its former biggest shareholder China Worldbest Group Co., Ltd. (CWGC) and about 3.56 million such shares from its former eighth biggest shareholder Shanghai Worldbest Investment Development (Group) Co., Ltd. The shares accounted for 35.08 percent of the company's capital stock and via public auction, Changjiang Media got them for approximately CNY 9.88 million, or CNY 0.05 per share. After adjustments in line with the aforesaid promoters' equity change plan, those shares accounted for 21.84 percent of the company's total capital stock. Changjiang Media thus became its biggest shareholder. The company on March 13 gained approval from the board to issue additional shares to Changjiang Media and after the share issue, it will become an entity with publishing as major business.

Yuan Keping, a retail investor of the company, witnessed the whole process of its shift. According to the company's third-quarter financial results, Yuan ranked No.1 among its top 10 tradable shareholders. Despite of a sale of 226,000 shares in the quarter, he still owned about 12.77 million such shares as at the end of September 30, 2010. The shares accounted for 4.32 percent of the company's total capital stock and provided that the shares are priced at CNY 7.35 per share, the company's closing price before suspension, those shares' market value will hit approximately CNY 93.89 million. Yuan cast eye to the company as early as the third quarter of 2009 and based on 17.55 million its shares, he ranked No.2 among its tradable shareholders that time. Currently, he controls about 8.42 million shares of it in line with the promoters' equity change plan.

(USD 1 = CNY 6.57)

Source: www.nbd.com.cn (March 15, 2011)

KEYWORD: SHANGHAI INDUSTRY KEYWORD: Internet & Online Services & Media SUBJECT CODE: Media
Printing/Publishing
SinoCast China Business Daily news
SinoCast China Financial Watch
publishing
acquisition
consolidation
back-door listing
capital stock

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