On January 15, 2021, China Literature Limited (”China Literature”, stock code: 0772.HK) and Tencent Music Entertainment Group（“Tencent Music”, NYSE:TME） announced that Tianjin Yuewen Film Culture Media Co., Ltd.，a subsidiary of China Literature, and other vendors have entered into an equity transfer agreement with Guangxi Qingse Venture Capital Co., Ltd., a subsidiary of Tencent Music, Shenzhen Lanren Online Technology Co., Ltd. (”Lazy Audio”) and the management shareholders, pursuant to which Tencent Music agreed to purchase 100% equity interest held by China Literature and other vendors in Lazy Audio at the aggregate consideration of RMB 2.7 billion (including certain post-transaction equity settled awards to the management shareholders). Acting as legal counsel for China Literature, JunHe provided legal services for the vendors represented by China Literature throughout this transaction.
Established in 2012, Lazy Audio is an audio platform providing users with audiobooks, cross talks and storytelling, podcasts and other radio programs. It has a large catalogue of classic and original IP audio works, such as Red Family Letters, Like a Flowing River, White Deer, Joy of Life, Soul Land and Battle Through the Heaven. Lazy Audio has a large number of users and has formed an interactive community with high user activities and engagement after many years of development. It is one of the leading audio platforms in China, providing high quality contents and services to its Chinese customers. This transaction helped each vendor achieve a high return on investment and led to the exploration of the ecological link between the two subdivisions of long form audio and music.
JunHe lawyers participated in multiple rounds of negotiations, discussions and coordination with the purchaser with respect to transaction arrangements and agreement texts, and, with extensive experience in similar projects and by efficiently and prudently delivering professional expertise and services, ultimately assisted China Literature in successfully signing the project contract. JunHe lawyers will continue to provide legal services to complete the transaction.
The leading partners were Mr. Wang Yi and Ms. Chen Yan.