Hunan TV & Broadcast Intermediary Co., Ltd. (SZSE: 000917) signed the merger framework agreement to acquire remaining majority stake in Hunan Huixin Cable Network Co., Ltd., Hunan Huide Cable Network Co., Ltd., Hunan Huiyue Cable Network Co., Ltd., Hunan Huirun Cable Network Co, Ltd for CNY 1.3 billion in stock on July 4, 2011. Hunan TV & Broadcast Intermediary will acquire remaining 96.06% stake in Hunan Huixin Cable Network, 90.68% stake in Hunan Huide Cable Network Co., Ltd, 92.1% stake in Hunan Huiyue Cable Network Co., Ltd and 92.78% stake in Hunan Huirun Cable Network Co, Ltd. Hunan TV & Broadcast Intermediary will issue 52.48 million shares for CNY 25.67 per share. Upon completion of the transaction, Hunan TV & Broadcast Intermediary will be the surviving company and Hunan Huixin Cable Network Co., Ltd., Hunan Huide Cable Network Co., Ltd., Hunan Huiyue Cable Network Co., Ltd. and Hunan Huirun Cable Network Co, Ltd will be absorbed. The shares will be transferred after 36 months from the issuance.

The transaction is subject to approval by Board of Directors of Huixin Company, Huide Company, Huiyue Company, Huirun Company and Hunan TV & Broadcast Intermediary, regulatory approvals and general meetings of shareholder of Hunan TV & Broadcast Intermediary. The shareholders' meeting of Huixin Company, Huide Company, Huiyue Company, Huirun Company approved the merger framework agreement on July 4, 2011. The transaction has been approved by the China Securities Regulatory Commission on July 6, 2012. China Merchants Securities Co., Ltd acted as the financial advisor for Hunan TV & Broadcast Intermediary Co., Ltd.

Hunan TV & Broadcast Intermediary Co., Ltd. (SZSE: 000917) cancelled the acquisition of remaining majority stake in Hunan Huixin Cable Network Co., Ltd., Hunan Huide Cable Network Co., Ltd., Hunan Huiyue Cable Network Co., Ltd., Hunan Huirun Cable Network Co, Ltd on January 6, 2013.