BEIJING, April 15, 2016 /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
announced that its board of directors approved a plan to list its
subsidiary Beijing Super TV Co., Ltd. ("Super TV") separately on
the National Equities Exchange and Quotations, an emerging
over-the-counter market in China
(the "NEEQ") without an offering. Upon listing, Super TV will
comprise the Company's CA business and certain CA-related
businesses.
It is expected that, upon the successful completion of the
restructuring and the proposed listing of Super TV on the NEEQ, the
Company will own approximately 90% of the outstanding equity
interest of Super TV and certain executive officers and core
employees of Super TV will own the remaining 10% through an
internal capital raise. Super TV will also grant share options to
certain executive officers and core employees to purchase up to an
additional 20% of the post-exercise equity interests in Super TV in
aggregate after the listing. No such options may be granted,
however, unless Super TV achieves certain targets in terms of
performance or market capitalization. The Company will continue to
consolidate Super TV's financial results. Following the completion
of the proposed NEEQ listing of Super TV, the Company's American
depositary shares will continue to be traded on the NYSE, and its
common shares will continue to be registered under the Securities
Exchange Act of 1934, as amended (the "Exchange Act").
Mr. Jianhua Zhu, China Digital
TV's chief executive officer, stated, "Our business has evolved
over the years to a point where we see a clear dichotomy between
the traditional CA business and the emerging cloud-based content
services platform. Both businesses are uniquely positioned,
providing us confidence that they would operate more efficiently,
and be more accurately valued, under separate capital structures.
Since our leadership in this market is more widely recognized among
Chinese investors, we are evaluating the prospect of a NEEQ listing
for our traditional CA business in order to better support its
future growth. We will keep investors apprised as this process
moves forward in the coming weeks and months."
Established by the State Council in late 2012, the NEEQ is a
national over-the-counter market that supplements trading
activities on the Shanghai and
Shenzhen stock exchanges,
including the related Growth Equity Market exchanges. The NEEQ
allows for trading of stock of growth companies that do not
otherwise satisfy the requirements for listing on the main
Shanghai and Shenzhen stock exchanges, allowing small- to
medium-sized enterprises in China
access to the capital markets and greater exposure to the
investment community.
The Company's ability to complete the proposed NEEQ-listing of
Super TV is subject to various PRC exchange and regulatory
approvals and filings, and as a result, there are significant
timing, qualification and other uncertainties in connection with
the proposed listing of Super TV on the NEEQ.
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 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 Exchange Act. 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. 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.