In the end of October, a special purpose acquisition company Jaguar Acquisition Corporation announced that it has signed an agreement and plan of merger to acquire all of the issued and outstanding shares of China Cablecom Ltd.
China Cablecom Ltd. is the British Virgin Islands company, an emerging consolidated cable network operator and acquirer in the highly-populated Shandong province in the People's Republic of China. By terms of the transaction, immediately prior to its transaction with China Cablecom, Jaguar will redomesticate to the British Virgin Islands by means of merging with a wholly-owned subsidiary.
The BVI-registered China Cablecom is entitled to a 60% economic interest of Binzhou Broadcast and Television Information Network Co., Ltd., an operating cable TV joint venture with a local state-owned enterprise. China Cablecom consolidates 60% of the financial results of operations and cash flows of Binzhou Broadcasting, pursuant to applicable principles of US Generally Accepted Accounting Principles.
In 2006, the businesses acquired by Binzhou Broadcasting, which is located in the Shandong province in north-east China, generated approximately $8.3 million in revenues. Based on China Cablecom's 60% consolidation of Binzhou Broadcasting, this would have resulted in $3.3 million in earnings, and $1.7 million in net income. For 2007, Binzhou Broadcasting projects growth of revenues of approximately 10%.
