China Electronics Corporation, one of the country's largest State-owned IT companies, listed its 45-percent stake in China Cable Television Network Co Ltd -- priced at 450 million yuan ($66 million) -- on the Beijing Equity Exchange yesterday, according to the China Business News.
It's requested that bidders be State-owned enterprises (SOEs) or those majorly held by SOEs. The bidder's registered capital should be no less than 1 billion yuan, and its annual core business revenue during the past three years should be no less than 1 billion yuan.
If a bidder successfully acquires the 45-percent stake in China Cable Television Network Co Ltd, it should promise an investment of 2 billion yuan in the company within three years of becoming a shareholder.
This is the third time that China Electronics Corporation has auctioned its shares in China Cable Television Network Co Ltd this year. The move is a response to the State-owned Assets Supervision and Administration Commission's call for central State-owned enterprises to withdraw from non-core businesses as soon as possible.
China Electronics Corporation first announced the auction of its shares in China Cable Television Network Co Ltd in early May, and again on June 19. These auctions were aborted because China Cable Television Network Co Ltd was in the red for years.
China Electronics Corporation has mapped out its major businesses to focus on integrated circuit, key electronic pieces, software and systems, as well as mobile communication and household electronic products. China Cable Television Network is not included in the scope.
The State Administration of Radio, Film and Television, the country's broadcasting regulator, now holds a 52-percent stake in China Cable Television Network, while China Central Television, China National Radio and China Radio International hold 1 percent, respectively.
(Chinadaily.com.cn July 24, 2008)
