Xinhua Media Suspends Shares to Buy Financial News Outlet Cailianshe

Shanghai-listed Xinhua Media said on Monday evening it is planning to buy a controlling stake in Jiemian-Cailianshe, the Shanghai-based financial news and information group behind the Jiemian, Cailianshe and Lanjing Finance brands, by issuing new shares to its controlling shareholder's investment arm. The company called the deal a major asset restructuring that does not amount to a backdoor listing, and a related-party transaction, since the seller is Shanghai United Media Group's wholly owned cultural new-media investment company.

The two sides have signed only an intention agreement so far; the target's valuation and pricing remain undecided, and a formal contract has not been signed.

Xinhua Media is the main capital platform of Shanghai United Media Group, Shanghai's flagship state publisher, with businesses spanning book distribution, newspaper and magazine operations, advertising and media investment.

Jiemian-Cailianshe, also controlled by Shanghai United Media Group, covers financial news and financial information services and is pushing into data and technology, with its services reaching more than 150 financial institutions, 5,000 listed companies, 200 million stock investors and 700 million fund investors, according to its website.