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EXCLUSIVE: Customer For $30 Million China TechFaith Deal Was Nielsen Audio, New Document Shows

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EXCLUSIVE: Customer For $30 Million China TechFaith Deal Was Nielsen Audio, New Document Shows
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Benzinga's Top Initiations

Benzinga has heard that according to an obtained document from a JK Value analyst, the customer behind the China Techfaith Wireless Comm. Tech. Ltd (NASDAQ: CNTF) $30 million deal on January 25 was Nielsen Audio Inc.

The owner, operator and developer of Chinese commercial real estate properties has been quietly making it into the media rounds. As reported by Benzinga in December 2015, whispers were beginning to surface that China TechFaith was "grossly undervalued," and had multiple positive catalysts in its future.

Related Link: Exclusive: Investors See Big Things For China TechFaith

"The Street has not factored in a recent sale of three floors at one of the company's real estate sites for $25 million," Benzinga quoted Aptus Capital's John Romero as saying in December. "This is highly material information," Romero wrote in a Seeking Alpha post on the subject, "not in the public domain other than discussed in the Q&A [of a recent conference call]."

Now, almost three months later, Benzinga has heard that the buyer in that deal is Nielsen.

Numbers On The Move

For the nine months ended September 30, 2015, China TechFaith reported third-party revenue of $43.69 million. The contract between Nielsen and China TechFaith is valued at $30 million over three years.

After trading essentially flat Tuesday and Wednesday, China TechFaith saw a significant jump in trading on Thursday. At time of writing, the stock was up more than 16 percent on the day at $3.98.

Benzinga reached out to China TechFaith for remarks, but a spokesperson was unable to comment at the time.

Nick Donato contributed to this report.

Posted-In: Analyst Color Long Ideas News Rumors Global Exclusives Movers Trading Ideas Best of Benzinga

 

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