Very bad translation. Please see orignal statement below.
China Cable & Communication Signs Letter of Intent to Acquire Macau Media Holdings & Subsidiaries
Tuesday March 2, 8:31 am ET
Acquisition Would Add Important Broadcast and Distribution Rights in Both Cable and Satellite TV Networks in China
BEIJING, March 2 /PRNewswire-FirstCall/ -- China Cable and Communication, Inc. (OTC Bulletin Board: CCCI - News), a leading China-based cable TV company, today announced it has entered into a letter of intent to acquire Macau Media Holdings Ltd. (MMH) in a stock and cash transaction valued at approximately US$15 million, based on CCCI 's current stock price. Completion of this transaction is subject to due diligence and Chinese government approval for the renewal of MMH 's landing rights licenses.
Privately held MMH holds 2 out of the 28 landing rights licenses granted for 2003 for direct satellite broadcast into Chinese hotels and Expat complexes issued by SARFT (China States Administration for Radio, Film, and Television); and MMH has applied to renew its licenses for 2004. MMH estimates that the network has approximately 150 million potential viewers in China. For comparison purposes, the Company notes this would be approximately 44% of the entire U.S. population.
As part of the transaction, China Cable and Communication also would acquire MMH's two subsidiaries, China Five Star Media (Macau) Co. Ltd. (FSTV) -- the Automotive and Technology Channel and TV Viagens (Macau) SARL -- the Travel Channel. MMH also holds a 16.7% interest in a satellite earth station in Macau -- Cosmos Televisao por Satelite (SARL), which currently provides uplink services for eight channels.
Gareth Tang, President of China Cable and Communication, said, "The acquisition of Macau Media Holdings would be a major step forward in our strategy to diversify and broaden our revenue base. It would provide extremely valuable access to a potential audience equal to approximately 44% of the entire U.S. population."
Mr. Tang continued, "Because of the significant manpower and financial resources that will be required for the expansion of MMH's business, coupled with what we believe to be enormous revenue potential, we also have made the decision to discontinue our previously announced discussions relating to the acquisition of 50% of the Beijing Haidian Cable Television Network Information Co. Ltd. and our previously announced discussions with Beijing SINA Internet Information Service Co. concerning providing web-based interactive multi-media programming. Our Board and management team believe this focus is essential to CCCI's success and ability to create increased value for our shareholders."
Situated on the Southeastern coast of China in the Guangdong Province, Macau is 40 miles west of Hong Kong and 90 miles south of Guangzhou, the capital of Guangdong Province. The territory comprises a peninsula and two islands and the total area is 9.8 square miles.
About China Cable and Communication
China Cable and Communication, Inc. is a China-based cable TV company. Through its British Virgin Island subsidiary, the Company is the first foreign company to own and operate a cable television network in China.
Located 85 miles south of Beijing, the network currently offers 39 channels within the Baoding city limits and eight additional channels to outer areas in the Baoding metropolitan area. It transmits in both analog and digital over its fiber optic network and through 22 substations. With its fiber optic network, Baoding network is capable of transmitting 37 analog television programs, six digital signals and one FM music program. In addition to its cable television transmission services, Baoding network offers Internet access and value added services, such as broadband Internet access and on-demand services through our proprietary set-top boxes.
China Cable and Communication is well positioned as a foreign investor approved by The State Administration of Radio, Film and Television ("SARFT"), China's national regulatory authority for the broadcasting industry, to own interests in and provide operational management support to cable television networks in the People's Republic of China (PRC). The SARFT approval together with the trading of CCCI's common stock in the US, provide CCCI with a favorable advantage in access to foreign capital. China Cable and Communication, Inc. trades in the United States, under the ticker symbol CCCI, in order to provide U.S. investors with the opportunity to invest in a company that own interests in a PRC cable television network. For more information, please visit
www.chinacable.us .