Great Wall Film and Television will buy 87% of the shares in the premiere era to improve the layout of the film and television layout.

on the evening of Nov. 16, Great Wall Pictures released a draft acquisition report saying that the company plans to issue 839 million shares at a price of 9.12 yuan per share, while paying 220 million yuan in cash for 87.5 percent of the shares in Premiere Times at a price of 1.059 billion yuan.

original title: great Wall Movie adjusts acquisition details to buy 87.5% stake in Premiere Times

on the evening of November 16, Great Wall Pictures released a draft acquisition report saying that the company intends to issue 839 million shares at a price of 9.12 yuan per share. at the same time, pay 220 million yuan in cash to buy 87.5 percent of the shares in the premiere time, with a bid price of 1.059 billion yuan. Among them, the cash part needs to issue 91.9682 million shares and raise matching funds of no more than 240 million yuan.

it is worth mentioning that the holding companies in the premiere era are Gu Changwei and Jiang Wenli. The main business includes film and television post-production services, artist brokerage services, film and TV drama investment and production, representative works include the film "Red Sorghum", "Sunny days" and so on. TV series "Outlaws of the Marsh", "Kangxi Micro clothes Private visit", "Yongzheng Dynasty" and so on.

< strong > Great Wall Movie < / strong >

in fact, Great Wall Movie proposed to buy the premiere era at the end of 2016. However, in October this year, the company's plan at that time was, first of all, to issue 87.83 million shares at a price of 12.30 yuan per share and pay 270 million yuan in cash for a total price of 1.35 billion yuan to buy the 100% stake in Premiere Times held by willing Media, Han Wei and Jiang Wenli. Secondly, the company plans to issue 22.1545 million shares at 12.30 yuan per share and pay 273 million yuan in cash for a total price of 545 million yuan to buy 100% equity in Dena Pictures held by Bao Chunlei and Tong Liming.

on November 4 this year, Great Wall Movie and Television adjusted its plan, changing the offering price to 9.12 yuan per share, and the valuation at the premiere was also reduced from 1.35 billion yuan to 1.21 billion yuan.

and this further adjustment plan is mainly shown in three aspects:

the first is to terminate the transaction of Dana Pictures. Great Wall film and television insiders said that at the beginning, the company was optimistic about the cooperation and high growth rate between Dana and the company's content in the future. at present, the cash channel of listed companies in the development of the channel is gradually more clearly in the layout of the cultural tourism industry, so in a comprehensive consideration, Dana Pictures will not be put in this cooperation, and the company still maintains friendly contact with Dana Pictures.

the second is to reduce the proportion of equity in the premiere era from 100% to 87.5%. The above insider told the reporter that in the process of adjusting the plan, the Great Wall Group was transferred to the equity of Wu Hui, a financial investor, so this part was not included in this acquisition. After the completion of the acquisition, Great Wall Film and Television will hold 87.5% of the premiere era, and Great Wall Group, the controlling shareholder of Great Wall Film and Television, will hold 12.5%.

the third is to adjust the plan of the gambling agreement. In the original plan, the premiere promised that the net profit from 2017 to 2019 would be no less than 90 million yuan, 125 million yuan and 159 million yuan, respectively. Due to the lengthening of the acquisition time, the plan has been changed to a promise that the net profit from 2018 to 2020 will not be less than 90 million yuan, 118 million yuan and 157 million yuan, respectively. If the actual profit in any year of the commitment year is lower than the above-mentioned promised profit, the performance promisor shall compensate Great Wall Film and Television.

< strong > performance improvement after acquisition < / strong >

in this regard, some people in the industry believe that in the film and television industry, the premiere era, as a film and television company with experience and well-known artists, will have a good fit effect after it is injected into Great Wall Film and Television, which will be helpful to the film and television layout and performance of listed companies.

according to previous disclosure, the unaudited operating income during the premiere period in 2014, 2015, 2016 and 2017 was 1.8947 million yuan, 8.3549 million yuan, 72.5026 million yuan and 35.4828 million yuan respectively, and the operating profit was 25.01 million yuan, 3.671 million yuan, 41.5851 million yuan and 17.615 million yuan respectively.

if the acquisition is completed, the net profit of Great Wall Pictures for the whole of 2016 will increase by 14.57%, and the net profit from January to August 2017 will increase by 17.07%.

Future. Listed companies will focus on the comprehensive operation of film and television content and the cultural and entertainment industry. Insiders of Great Wall Film and Television said that during the premiere era, on the one hand, the creative team headed by Director Gu Changwei will continue to increase content creation and contribute better works to the audience, on the other hand, they will participate in some high-quality works through various resources. At the same time, artist brokers, led by Jiang Wenli, Ma Sichun and other head artists, continue to absorb and train excellent artists. Listed companies themselves are deeply engaged in the film and television industry, and will have a good synergy with the premiere era in IP, production, artists, channels and other aspects to make the film and television plate of Great Wall Film and Television bigger and stronger.

Edit: mary