Kuke Music skyrockets after strategic acquisition of Naxos Music Group

* Kuke Music Holding (NYSE:KUKE [https://seekingalpha.com/symbol/KUKE]) has acquired a controlling interest in Naxos Music Group for $106.35 million.
* KUKE +150% after hours to $2.95.
* The transaction was made through two transactions involving Naxos One Holding and Desun Holding.
* Kuke firstly subscribed for 17,500 newly issued Class B ordinary shares of Naxos One at $6,000 per share, for an aggregate consideration of $105 million.
* Secondly, it acquired 108 Class A ordinary shares of Naxos One from Desun at $12,500 per share, for an aggregate consideration of $1.35 million.
* The transaction was settled entirely through the issuance of Kuke’s Class A ordinary shares as consideration.
* Transaction Structure and Consideration
* Kuke issued 653M Class A ordinary shares and 8.39M Class A ordinary shares to Naxos One and Desun, as consideration for the share issuance transaction and the share transfer transaction, respectively.
* Pursuant to the terms of the Share Subscription Agreement, the consideration may be settled either in cash or through the issuance of Kuke’s Class A ordinary shares.
* Source: Press Release [https://seekingalpha.com/pr/20245368-kuke-music-holding-limited-announces-strategic-acquisition-of-controlling-interest-in-naxos]

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* Financial information for Kuke Music [https://seekingalpha.com/symbol/KUKE/income-statement]