Capital Alliance's SE Global outlines Sun Media deal
2005-01-10 17:23 ET - News Release
Mr. Toby Chu reports
CAPITAL ALLIANCE GROUP PROVIDES FOLLOW-UP ON SUN MEDIA INVESTMENT HOLDINGS
Capital Alliance Group Inc. subsidiary SE Global Equities Corp. has released supplemental corporate information provided by Sun Media Investment Holdings Ltd. on its recent announcement, which was reported in Stockwatch on Jan. 7, 2005.
Introduction to Sun Media Investment Holdings
Sun Media Investment Holdings (SMIH) is a media investment company that was founded between 1998 and 1999 by the popular Chinese TV program host Yang Lan and her husband Dr. Bruno Wu. Currently, SMIH invests in six key areas of media: television, publishing, sports marketing, education, advertising and financial news. SMIH has direct interests in 11 media companies, through which it holds shares in more than 30 media operations, which it believes control no less than 60 media brands in nine countries and 15 cities.
SMIH's top investments
One of SMIH's flagship investments is in Asia Multi-Media Technology Services Holdings Ltd. (AMT). AMT brings together multimedia content and network assets with experienced management to capture value and market share in China's growing multimedia industry sector. AMT has ownership of an advanced fibre optic network including a 34,880-kilometre two-core national IP fibre optic network servicing 440 cities in China and providing access to premium multimedia content assets and alliances, which it will deliver through its network to businesses, organizations and local service providers. SMIH believes AMT's fibre optic network is one of the longest in length in China and it has an appraised net tangible asset value of approximately $268-million (U.S.).
Through SMIH's content suppliers, AMT has access to a variety of multimedia content spanning such focus topics as business, sports, health care and gaming. By combining exclusive content with its proprietary network assets, AMT believes it has the synergies and competitive advantages to secure a competitive niche as one of China's premium content multimedia providers. AMT also plans to establish strategic partners, which it expects will include China's financial institutions, banks and insurance companies for setting up a national disaster backup storage network.
SMIH together with Lenovo, one of China's largest IT companies, has formed a joint venture named Sun 365 Multimedia Holdings Ltd. to develop broadband multimedia content and applications in China. Sun 365's media content will be added to AMT's pipeline of content offerings.
SMIH has also begun to penetrate the North American market with its media content through its Hong Kong-based subsidiary, The Observer Star Global Publishing Holdings Ltd., and its Chinese-language premium business newspaper, The Observer Star. Since its launch on Aug. 30, 2004, SMIH believes The Observer Star has established itself as a reliable source of business information and insight on businesses in China.
Notable governance and management personnel
AMT reports that its advisory board members will include such respected individuals as Yang Yuan-Qing, chairman of Lenovo, and Zhao Wei-Cheng, founding chairman of China Unicom, with other notable members to be announced in the future.
On the board of directors of AMT is Dr. Wu, who is the founder and executive chairman of Sun Media Investment Holdings. Mr. Wu studied at the University of Savoie, France, before earning his master's degree in international relations at Washington University in St. Louis, Miss., and a PhD in the international politics department of college of law from Fudan University, Shanghai, China. Dr. Wu has served as the chief operating officer of ATV, one of the two free-to-air television networks in Hong Kong.
Other board members of AMT include Nie Jian-Lin, vice-chairman and secretary-general of China Mobile Telecom Association, the industry association of the six state-owned telecommunication companies, and Chauncey Shey, chief executive officer of Softbank China Holdings and co-founder of UT Starcom, a company listed on the Nasdaq Stock Market.
The chairman of Sun Media Holdings is the famous Chinese TV broadcaster, Ms. Lan. Ms. Lan graduated from the Beijing Foreign Studies University and began her media career as a host of a variety show airing on China Central Television (CCTV). Ms. Lan holds a master's degree in international and public affairs from Columbia University. In 1999, with her husband, Dr. Wu, she started her own media company Sun Television Cyber Networks (commonly known as Sun TV). Ms. Lan also acted as an ambassador for her country by representing China for Beijing's successful 2008 Olympic bid.
