Conshy firm merging with Chinese cable operator

A Conshohocken company says it has become the first foreign firm to buy into the Chinese cable industry.

Shareholders of Jaguar Acquisition Corp., a special-purpose acquisition company, today approved a merger with China Cablecom Ltd., a cable network operator and acquirer in Shandong province, Jaguar Acquisition chairman and CEO Jonathan Kalman said.

"This is the first time the Chinese government has allowed foreign investment into the Chinese cable industry," he said.

China Cablecom operates in partnership with a local state-owned enterprise authorized by the Chinese government to control the distribution of cable TV services. Its network has more than 400,000 subscribers.

Kalman said that there are 139 million households with cable in China and that the industry is ripe for growth. "This is a fantastic opportunity," he said. "This is probably what [Comcast co-founder] Ralph Roberts felt 20 years ago."

Jaguar Acquisition was formed in 2006 and raised $28.3 million for acquisitions that year. According to the terms of the stock purchase agreement, the management team has until April 13 - next week - to complete a business combination or return the money to investors, Kalman said.

The company considered 45 companies for acquisition before settling on china Cablecom, he said.

Jaguar Acquisition will now be known as China Cablecom.