Reporter Lu Xiao reports from Beijing
The new destination of Lok Rong will be announced in the near future.
At 10:00 a.m. on September 21, the Beijing Third Intermediate People's Court began bidding for the three tenders held by Le Sight Holdings. Two of the targets were the Rongzhong New Equity, which was auctioned by Minsheng Trust with a capital contribution of $31.245 million, and the Rongzhong New Equity, which was auctioned by CAAC Trust with a capital contribution of $26.183 million. The two part equity is equivalent to 18.38% of Lok holdings's new equity interest. The third target is the 21.8122% stake of the music video industry (Beijing) Limited.
As of the China times press release, only one of the three subjects has signed up for the auction.
Lerong's entry into the judicial auction process has resulted in a sharp drop in the price of new shares, which is a good deal for bidders. The court announcement showed that the valuation of the two new shares totaled about 350 million yuan and the initial bid price totaled about 240 million yuan. With a rough calculation of the assessment price, the new valuation of Lok Rong is only about 1 billion 900 million yuan. As a reference, Yue Rong has raised 2 billion 700 million yuan in June of this year with a valuation of 9 billion yuan. In February 2017, when it was called music, the value of the new TV business was as high as 30 billion yuan.
The value of the auctioned auction shares also shrank by more than 60% compared with the peak. Court notice shows that the assessed price of the above shares is 760 million yuan. Based on this rough calculation, the value of the music video industry is about 3 billion 500 million yuan. And in May 2016, music network disclosed that music as the film reorganization plan, music as the movie industry valued at 9 billion 800 million yuan.
Yue Rong's new two shareholder fusion is considered the most likely shot. A new announcement in June showed that the shares of Le Rong Television Network will be reduced from 40.31% to 35.42%, while the shares of Tianjin Jiarui, owned by Rong Chuang, will be reduced to 28.2%. But if Rongchuan takes a 18.38% stake in the auction, Rongchuan will jump to the top shareholder with a 46.58% stake. Prior to that, Lok has already lobed 35% of the new equity pledge to the two companies.
Sun Hongbin, chairman of financial innovation, has also expressed good prospects for TV business and film industry on many occasions. "We can increase our capital, we can find people to cooperate with, and the company still knows," he said of LTV at Rongchuang's performance Conference on March 29. As for the Le TV film industry, Le TV Network announced in December 2017 that Jiarui Huixin plans to increase the capital of Le TV film industry. After the completion of the capital increase, Tianjin Jiarui holds 40.7500% of Le TV film industry as the largest shareholder.
It should be mentioned that on September 19, LTV announced that the majority shareholder Jia Yueting held about 137 million shares of LTV network shares on September 14 this year to be unloaded. The Pledgee of this share is also mentioned above for the livelihood trust which applies for the auction to create new equity shares. It is not clear whether this is related.
But on Sept. 21, both LTV and LTV Holdings told the Huaxia Times that they did not know the source of the pledged funds. Zhao Zhan lawyer, a special researcher at the Intellectual Property Center of China University of Political Science and Law, told the Huaxia Times that the shares could also be disposed of by Minsheng Trust, such as transferring others'shares.
As of the "China Times" reporter published, LTV stock price performance will be stable, the current offer of 3.29 yuan, a slight drop of 0.6%.
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