(Yicai Global) Dec. 16 -- Hunan TV and Broadcast Intermediary Co. [SHE:000917], China's second-most watched television station, second only to CCTV-1, the flagship station of the State broadcaster, will invest CNY160 million (USD23 million) enter the health insurance market with Chinese listed companies.
The broadcaster and a number of domestic firms will set up the provisionally named Ai'er Health Insurance Co., with a registered capital of CNY 1 billion. The company will contribute CNY160 million in cash, accounting for 16 percent of the new company's total registered capital.
Partners in the deal include Tibet Ai'er Medical Investment Co. , Hunan Yonker Environmental Protection Co. [SHE:300187], Talkweb Information System Co. [SHE:002261], Centre Testing International Group Co. [SHE:300012] and Chongqing Lummy Pharmaceutical Co. [SHE:300006], Hunan TV said.
Tibet Ai'er Medical Investment will hold a 20 percent stake, while all the other shareholders will each take a 16 percent stake.
The proposed insurance company will leverage the client resource advantage of its major founding shareholders and will initially launch businesses in four regions, Beijing, Tianjin, Hebei and Hunan.
Hunan TV and Broadcast Intermediary's participation in the establishment of the health insurance company will help improve its investment structure, produce synergies between its cable network, investment management and mobile marketing businesses and its health insurance business in terms of client resources and overall marketing, the company said.