XSEL to Acquire China Sports Media, China's Largest Sports Media Rights Distributor
04 Dicembre 2009 - 11:41AM
PR Newswire (US)
BEIJING, Dec. 4 /PRNewswire-Asia-FirstCall/ -- Xinhua Sports &
Entertainment Limited (Nasdaq: XSEL; "XSEL"), a leading sports and
entertainment media company in China, announced today that it has
entered into an agreement to acquire China Sports Media ("CSM"),
China's leading sports media rights distributor. CSM has popular
domestic, Asia, and other content including the China Basketball
Association (CBA), China Soccer League (CSL), AFC Champions League,
Soccer's World Cup Qualifiers, AFC Asian Cup, Mission Hills Golf
World Cup, FIFA Club World Cup, FIVB Volleyball World Championships
and others. CSM has over 80% of the Chinese sports television
rights and distribution market, and is the long term partner of the
All-China Sports Federation for its television rights business. CSM
was also the working partner of the Chinese Olympic Committee. Ms.
Fredy Bush, XSEL's CEO commented, "CSM's current portfolio of
popular domestic and Asia sports content combined with XSEL's wide
range of international content makes us the leading sports rights
owner in China. Furthermore, XSEL has a broad distribution platform
that CSM will be able to utilize for its sports content." Mr. Li Yi
Dong, CEO of CSM said: "We are excited to be joining the XSEL
family and look forward to working with our new colleagues to
continue to grow the Company's leading position in China's
burgeoning sports media market." Under the terms of the
transaction, CSM is valued at US$15.5 million, of which US$10.5
million will be paid in the form of approximately 5.7 million
American depositary shares, (or "ADS") valued at US$1.83 per ADS
and US$5 million in cash. Management believes that CSM may generate
average annual net income of US$3.3 million for the period from
2010 to 2012. Mr. LC Chang, a shareholder and director of CSM, will
be appointed to the senior management of XSEL with the title of
President, reporting to Fredy Bush, CEO, and will be appointed as a
new director. Previously, Mr. Chang served as Executive
Vice-President and Chief Marketing Officer of Sina.com responsible
for its global operations, brand integration, marketing and online
media sales. Prior to that, Mr. Chang was General Manager of Grey
Advertising Taiwan from 1992 to 2000. Ms. Bush added, "We welcome
Mr. LC Chang to our senior management as President and also as a
board member. We look forward to his valuable insights and
contributions to XSEL's vision to become the leading sports media
company in China." Transaction Details At the closing of the
transaction, XSEL will issue an initial tranche of approximately
eight million common shares (equivalent to 4,000,000 American
depositary shares, or "ADS"), valued at US$0.915 per share
(equivalent to US$1.83 per ADS), and pay US$1 million in cash to
CSM's selling shareholder, with a further US$4 million in cash and
approximately 3.4 million common shares to be delivered if CSM
achieves certain net income and cash flow targets for 2010 and
2011. About XSEL Xinhua Sports & Entertainment Limited ("XSEL";
NASDAQ: XSEL) is a leading sports and entertainment media company
in China. Catering to a vast audience of young and upwardly mobile
consumers, XSEL is well-positioned in China with its unique content
and access. Through its key international partnerships, XSEL is
able to offer its target audience the content they demand -premium
sports and quality entertainment. Through its Chinese partnerships,
XSEL is able to deliver this content across a broad range of
platforms, including television, the Internet, mobile phones and
other multimedia assets in China. Along with its integrated
advertising resources, XSEL offers a total solution empowering
clients at every stage of the media process linking advertisers
with China's young and upwardly mobile demographic. Headquartered
in Beijing, the company employs more than 1,000 people and has
offices and affiliates in major cities throughout China including
Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong. Xinhua Sports
& Entertainment Limited shares are listed on the NASDAQ Global
Market (NASDAQ:XSEL). For more information, please visit
http://www.xsel.com/ . Safe Harbor Statement This announcement
contains forward-looking statements. These statements are made
under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. Among other
things, any quotations from management in this announcement contain
forward-looking statements. Statements that are not historical
facts, including statements about XSEL's beliefs and expectations
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties that could cause actual results to
differ materially from those contained in any forward-looking
statements. Potential risks and uncertainties include, but are not
limited to, risks outlined in XSEL's filings with the U.S.
Securities and Exchange Commission, including its annual report on
Form 20-F. All information provided in this press release is as of
the date hereof, and XSEL undertakes no duty to update such
information, except as required under applicable law. For more
information, please contact: Media Contact Joy Tsang XSEL Phone:
+86-10-8567-6050; +86-136-2179-1577 Email: IR Contact Edward Liu
XSEL Phone: +86-10-8567-6061 Email: Howard Gostfrand American
Capital Ventures Phone: +1-305-918-7000; toll free +1-877-918-0774
Email: DATASOURCE: Xinhua Sports & Entertainment Limited
CONTACT: Media, Joy Tsang, XSEL, +86-10-8567-6050 or
+86-136-2179-1577, ; IR Contact, Edward Liu, XSEL,
+86-10-8567-6061, ; Howard Gostfrand, American Capital Ventures,
+1-305-918-7000, or toll free +1-877-918-0774, Web site:
http://www.xsel.com/
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