BEIJING, Nov. 29, 2010 (GLOBE NEWSWIRE) -- China Networks International Holdings Ltd ("China Networks" or the "Company") (OTCBB:CNWHF), a television advertising operator based in China, announced today that it has entered into an agreement with its equity joint venture partners, Kunming TV Station (the "KM JV"), on the sale of the Company's assets in Kunming Taishi Information Cartoon Co., Ltd. ("the KM JV"), located in Yunnan Province.
The sale, which consists of a 50% equity stake of KM JV and 20 years exclusive advertising operational rights in six television channels covering five districts, eight counties and one city, in Kunming, with a combined population of approximately 6.3 million, will be sold for total consideration of $22.6 million (RMB150 million), subject to PRC regulatory approvals. The initial upfront cash payment of $11.3 million (RMB75 million) has been received by the Company and will be used to deliver an early repayment to holders of the Company's $11 million senior secured convertible debentures. China Networks will be entitled to the remaining payments in five installments, expected to be completed by December 31, 2011.
As part of the Company's strategic plan, it has concluded that with the early retirement of its debt and an improved capital structure, it will be able to seek new opportunities to invest in additional television stations and to acquire assets fit for its expansion plans.
Mr. Shuangqing Li, the Company's Chairman and Chief Executive Officer says, "Due to the recent restructuring and integration of our Kunming assets, our joint venture partners approached us regarding the sale of our equity stake. As the operations have performed exceptionally well, we decided it was in the best interest of our shareholders to liquidate the assets at premium market value and to repay our senior secured notes. Going forward, we are extending the next phase of our development through opportunities and ventures in additional TV stations that can help generate good profitability and valuations for the Company."
About China Networks
China Networks International Holdings, Ltd., is a media advertising company focusing on providing international and domestic advertising to its exclusive networks in tier two and tier three cities in China. The Company owns a 50% interest in Shanxi Yellow River & Advertising Networks Cartoon Technology Co., Ltd (Yellow River) through a joint venture. China Networks along with its joint venture partners seeks to add more television stations to its advertising network. For more information about China Networks, visit .
The China Networks International Holdings Ltd. logo is available at
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