Sandmartin International Holdings, a Hong Kong-based maker of digital TV set-top boxes (STBs), on December 20 announced that it will acquire HK$200 million (US$25.7 million) of convertible bonds issued by Hong Kong-listed Heng Xin China Holdings by the end of 2010, a bid to tap the China market of cable TV equipment and terminal devices as well as system integration services through strategic partnership with Heng Xin.

In order to set up the strategic partnership, Sandmartin plans to convert all of the bonds into an estimated 5% stake in Heng Xin, the former indicated.

Heng Xin has won cable TV operating rights in Hunan and Hubei Provinces, central China, and Hebei Province, northern China, with about five million subscribers in total, Sandmartin indicated. Through Heng Xin, Sandmartin expects to be responsible for upgrading cable TV networks and to participate in development of value-added services.