Date
17 January 2017
Letv is bowing to pressure from a volatile stock market. It initially proposed to raise 7.51 billion yuan from the sale of 200 million shares before stock prices crashed in June. Photo: HKEJ
Letv is bowing to pressure from a volatile stock market. It initially proposed to raise 7.51 billion yuan from the sale of 200 million shares before stock prices crashed in June. Photo: HKEJ

Letv slashes placement amid volatile stock market

Leshi Internet Information & Technology Corp. (Letv, 300104.CN) is slashing a planned private placement to 4.8 billion yuan (US$752 million) amid China’s volatile stock market.

The company is planning to place 155 million new shares to fund a video database.

Letv initially proposed to raise 7.51 billion yuan from the sale of 200 million shares before stock prices crashed in June, the Hong Kong Economic Journal reports, citing a company filing with the Shenzhen Stock Exchange.

The announcement came after the company won the broadcast rights to the 2016 English Premier League (EPL) season for a reported US$400 million.

Also, it has agreed in principle with Now TV, the television unit of  PCCW Ltd. (00008.HK), on a broadcast collaboration.

The agreement allows Now TV to show some EPL matches in Hong Kong. 

Meanwhile, Letv has tapped Hong Kong Broadband Network Ltd. (HKBN) to distribute its television set-top boxes in Hong Kong.  

Letv Asia Pacific chief executive Mok Chui-tin said the agreement with HKBN is unrelated to the EPL broadcast.

As part of its EPL promotion, Letv is offering TV boxes free for the first six months after charging a HK$389 deposit and a HK$10 administration fee. 

The offer covers orders from Oct. 8 to Nov. 18.

Mok said the company will produce two to four Cantonese programs each year and foreign programs with Cantonese subtitles.

[Chinese version中文版]

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