LeTV Announcement Continues to Suspend: It Has Been Stopped for Six Months

Guidance: LeTV.com (300104.SZ) announced the announcement of progress during the suspension of major asset restructuring, and will continue to suspend trading since the market opened on October 17. From April 17th, LeTV has been suspended for six months. LeTV.com's major asset restructuring company is LeTV (Beijing) Co., Ltd. In May 2016, LeTV revealed its plan to acquire LeTV. The plan said that LeTV.com planned to acquire 100% equity of LeTV Films from 44 shareholders, including LeTV Holdings, using shares and cash in a total transaction amount of no more than 9.8 billion yuan. From November to November, LeTV.com stated that due to major changes in the market environment, there may be a significant impact on the performance commitment and the basis of valuation. It is expected that this major asset restructuring will not be completed in 2016. On April 14 this year, LeTV announced again that it had conducted a new audit and evaluation work on December 31, 2016 as the auditing and evaluation base date, and renegotiated the reorganization plan with the counterparty. The company plans to convene the board of directors in the near future to review the reorganization and announce the new restructuring plan, which is expected to constitute a major adjustment to the original plan. It will be suspended from the morning of April 17, and the suspension time is expected to not exceed five trading days. On July 18th, LeTV disclosed the main contents of the adjustment: due to the adjustment of the shareholding structure, the shareholder of the target company will increase to 46, and the number of counterparties to this transaction may increase to 46; the transaction price of the underlying asset is expected to decrease, but The specific amount has not yet been finalized; the base date for pricing of asset purchases for issuing shares has been re-determined; the total amount of funds raised has been adjusted. LeTV.com stated that the adjusted reorganization plan still needs further communication and confirmation with the counterparty, and the company will sign a new transaction agreement with all counterparties after the related matters are determined and convene the board of directors to review related matters. LeTV will convene the board of directors to review the reorganization plan within six months from the date of the first suspension of trading (April 17, 2017). Recently, LeTV.com stated that it planned to announce the major assets reorganization plan and other relevant information before October 16, 2017. However, since this major asset reorganization involves major non-precedential matters, the development of relevant work is currently subject to major uncertainties. As a result, the company is not expected to disclose this major asset restructuring plan or report and apply for resumption of trading before October 16, 2017. At present, LeTV Holdings holds 21.81% equity of LeTV Film, which is the largest shareholder, Jiayue Pavilion is the actual controller of LeTV Holdings; Tianjin Jiahui Huixin Enterprise Management Co., Ltd. holds 21.00% equity of LeTV Film, which is the second largest shareholder .

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