BEIJING, China, July 16, 2015 /PRNewswire/ -- China Digital TV
Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the
"Company"), the leading provider of cloud-based application
platforms and conditional access ("CA") systems which enable
China's digital cable television
market to offer and secure diversified content services, today
provided further updates on its asset restructuring (the
"Restructuring") with Shanghai Tongda Venture Capital Co., Ltd
("Tongda Venture"), as referred to in the press releases dated
June 13, 2014, October 9, 2014, October
27, 2014, November 27, 2014,
respectively. The Company announced that Tongda Venture has
received an approval in principle (the "Approval") from the
Ministry of Commerce of the People's
Republic of China ("PRC Ministry of Commerce").
According to the Approval, the PRC Ministry of Commerce
principally agreed that Golden Benefit Technology Limited ("Golden
Benefit"), a wholly owned subsidiary of STV, may use its 25% equity
interest (approximately equal to RMB800
million) in Beijing Super TV Co., Ltd. ("Super TV"), a
wholly-owned subsidiary of Golden Benefit, to subscribe for Tongda
Venture's non-public offering of A shares ("New Shares"), and will
be effective for 180 days from issuance date. It is required under
the Approval that Tongda Venture should divest its equity interest
in Beijing CNLive Culture Media Inc, a culture and media company
focusing on mobile TV in which foreign investment is not allowed,
prior to Golden Benefit acquiring the New Shares. The Company will
submit related documents and materials to the China Securities
Regulatory Commission (the "CSRC") for approval as soon as
possible.
There will be uncertainties in completing the Restructuring,
which remains subject to regulatory clearance by the CSRC. The
Restructuring will be subject to review by the respective
regulators amid increasingly stringent standards for such
transactions. As such, there is no assurance that these approvals
or regulatory clearance will be obtained within a reasonable
timeframe, or at all. According to the framework agreement signed
on June 13, 2014, the Restructuring
will be terminated if it is not completed by December 31, 2015.
About China Digital TV
Founded in 2004, China Digital TV enables television network
operators to manage, extend and diversify content services across
households and public areas in China. China Digital TV is the leading
provider of cloud-based application platforms and network
broadcasting platform ("NBP") services to Chinese cable operators,
helping them to effectively bring mobile gaming apps and other
entertainment options to household television sets, and extend
cable programming outside the home to any mobile device. China
Digital TV is also the leading provider of CA systems in
China's digital television market.
CA systems enable television network operators to secure the
delivery of content to their subscribers. The Company cooperates
with nearly all of China's cable
television operators.
For more information please visit the Investor Relations section
of China Digital TV's website at http://ir.chinadtv.cn.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 27A of the United States Securities Act of 1933,
as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended. Such forward-looking
statements are made under the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," "may," "should" and
similar expressions. Such forward-looking statements include,
without limitation, statements regarding the outlook for the second
quarter of 2015 and comments by management in this announcement
about trends in the CA systems, digital television, cable
television and related industries in the PRC and China Digital TV's
strategic and operational plans and future market positions. China
Digital TV may also make forward-looking statements in its periodic
reports filed with the Securities and Exchange Commission, in its
annual report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about China Digital TV's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from
projections contained or implied in any forward-looking statement,
including but not limited to the following: competition in the CA
systems, digital television, cable television and related
industries in the PRC and the impact of such competition on prices,
our ability to implement our business strategies, changes in
technology, the progress of the television digitalization in the
PRC, the structure of the cable television industry or television
viewer preferences, changes in PRC laws, regulations or policies
with respect to the CA systems, digital television, cable
television and related industries, including the extent of non-PRC
companies' participation in such industries, and changes in
political, economic, legal and social conditions in the PRC,
including the government's policies with respect to economic
growth, foreign exchange and foreign investment.
Further information regarding these and other risks and
uncertainties is included in our annual report on Form 20-F and
other documents filed with the Securities and Exchange Commission.
China Digital TV does not assume any obligation to update any
forward-looking statements, which apply only as of the date of this
press release.
For investor and media inquiries, please contact:
China Digital TV Holding Co., Ltd.
Nan Hao
Investor Relations Manager
Tel: +86-10-6297-1199 x 9780
Email: ir@chinadtv.cn
ICR, Inc.
Charles Eveslage
Tel: +1 (646) 328-1950
Email: stv@icrinc.com
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SOURCE China Digital TV Holding Co., Ltd.