China SPAC Goes Operational: Alyst Acquisition Corp. (AYA)

There was a release this morning showing that a Special Purpose Acquisition Company (SPAC, or blank check company) called Alyst Acquisition Corp. (AMEX: AYA) has signed an agreement to acquire all of the shares of China Networks Media Ltd., a British Virgin Islands company which owns and is in the process of acquiring television station operating assets in the People’s Republic of China. 

Alyst will redomesticate to the British Virgin Islands by merging withChina Networks Holdings immediately prior to consummating itstransaction with China Networks.  Chardan Capital Markets, LLC isacting as exclusive advisor to the transaction.

China Networks’ Advertising Networks Limited has positioned itself as afast growing television advertising network in China.  China Networksprovides local, national and international advertisers with directaccess to China’s rising audience of consumers.  Through long-termcontracts, it also operates as the exclusive advertising arm forstations within its network.

China Networks was established in October 2007 and has completed theconsolidation of two television advertising companies to date withadditional negotiations in progress with other Chinese stations.

Combined "audited carve-out revenue" for Kunming Taishi InformationCartoon Co., Ltd and Shanxi Yellow River and Advertising NetworksCartoon Technology Co., Ltd for the year ending 2007 was approximately$21.0 million, with net income of approximately $14.7 million.  ChinaNetworks’ consolidation of each
yields revenue of approximately $21.0 million and net income ofapproximately $7.4 million.  As a combined entity, China Networks’ proforma two-year CAGR was 15%.

Jon C. Ogg
August 18, 2008