China Cable and Communication, Inc., a China-based cable TV company, today announced it has entered into a letter of intent to acquire Macau Media Holdings Ltd. (MMH) in a stock and cash transaction valued at approximately US$15 million, based on CCCI 's current stock price.
Completion of this transaction is subject to due diligence and Chinese government approval for the renewal of MMH's landing rights licenses.
Privately held MMH holds 2 out of the 28 landing rights licenses granted for 2003 for direct satellite broadcast into Chinese hotels and Expat complexes issued by SARFT; and MMH has applied to renew its licenses for 2004. MMH estimates that the network has approximately 150 million potential viewers in China. For comparison purposes, the Company notes this would be approximately 44% of the entire U.S. population.
As part of the transaction, China Cable and Communication also would acquire MMH's two subsidiaries, China Five Star Media (Macau) Co. Ltd. (FSTV)–the Automotive and Technology Channel and TV Viagens (Macau) SARL–the Travel Channel. MMH also holds a 16.7% interest in a satellite earth station in Macau–Cosmos Televisao por Satelite (SARL), which currently provides uplink services for eight channels.