- Lead Eastern Investment Co., Ltd. (000673.SZ) recently announced plans to buy out Yongle Film & Television Co. for RMB 2.55 billion, as reported by Cnstock.
- Lead Eastern Investment plans to finance the deal by issuing 213 million shares at RMB 11.96 per share.
Why It Matters:
- Yongle Film & Television’s existing major shareholder has promised that the company will post net profits of no less than RMB 215 million, RMB 295 million, RMB 365 million and RMB 420 million respectively for 2017, 2018, 2019, and 2020.
- Founded in 2004, Yongle Film & Television is mainly engaged in film and TV drama production and distribution. The company posted a net profit of RMB 126 million for 2016.
- Lead Eastern Investment is also mainly engaged in the television program distribution. Lead Eastern Investment believes that the deal will help the company expand its content and distribution channels.