According to an announcement made by Beijing Gehua CATV Network Co., Ltd. (600037), Gehua Yiwang Sci-tech Development Co., Ltd., one of its subsidiaries, will establish a joint venture engaged in the broadband sector with Netfront Information Technology Limited.

The registered capital of the new joint venture will be USD 33.4 mln, of which 51% will be contributed by the company with its own funds, while the other 49%, equal to USD 16.37 mln, will be contributed by Netfront Information Technology.

The total investment in the joint venture is estimated to be USD 100 mln, with investment other than the registered capital to be made available through other financing channels.


Source: China Securities Journal

Date: 4 Aug 2008

CN01/FL/DM/BT/MM