(Yicai Global) Sept. 22 -- Hubei-based media company Wuhan DDMC Culture Co. [SHA:600136] plans to raise up to CNY200 million (USD30.3 million) through a private share placement to finance an indirect equity purchase in football broadcaster Super Sports Media Inc., the listed firm said in a press briefing on Sept. 21.
The net proceeds will be injected into DDMC Culture’s Hong Kong subsidiary to fund the share purchase.
DDMC plans to build a strong strategic presence in the sports sector, boost the development of related businesses and deepen synergies between business segments related to the sports marketing ecosystem through the acquisition.
To accelerate the process, DDMC will offer up USD290 million. Its Hong Kong subsidiary will raise USD210 million through offshore financing to complete the takeover.
Super Sports Media, founded in 2010, specializes in sports content, product subscription and advertising operations. Its core business is content copyright distribution, which accounts for over 80 percent of the firm’s total revenue. Its largest shareholder at present is IDG-Accel China Growth Fund, with a 31.08-percent shareholding.
DDMC Culture’s main businesses include television series, derivatives, entertainment and sports marketing, copyright licensing and event organization.
The pair will work together after the acquisition to further develop the sports industry chain, boost the development of related businesses, such as sports marketing and sports video streaming, and create a multi-level and multi-channel business network.