Focus Media Announces $60 million repurchase of shares from Fosun International

6 July 2011 12 h 48 min 14 comments

SHANGHAI, July 6, 2011 — Focus Media Holding Limited (Nasdaq: FMCN), China’s largest out-of-home digital media group, today announced that they have entered into a definitive agreement with Fosun International, one of Focus Media’s shareholders. Focus Media will repurchase from Fosun International 1,956,310 ADSs, each representing five ordinary shares of Focus Media at a price of US$30.67 per ADS (or US$6.134 per ordinary share), totaling $60 million through a privately negotiated transaction.

Inclusive of this block repurchase, Focus Media has to date approximately spent $300 million of its previously announced share repurchase program. ADSs and ordinary shares will be cancelled, subject to customary cancellation procedures, upon repurchase.

[In september 2010, Focus Media Holding Limited announced a definitive agreement with Fosun International for the repurchase from Fosun International of 9,523,810 ADSs, each representing five ordinary shares of Focus Media at a price of US$21 per ADS (or US$4.2 per ordinary share), totaling $200 million through a privately negotiated transaction.

Fosun International bought the shares in Focus Media in 2008 and 2009.

Fosun International investment in Focus media

. Fosun spent $150.11 million on 17,267,078 American depositary shares on the open-market between Nov 17 and Dec 22, making it Focus Media’s largest shareholder with 13,3% stake

. 28 Jan. 2009: Fosun jumped to 22.96% stake in the company

. Between January 28 and February 5: Focus International bought another 1.3% stake (24,41%)

. 11 Feb 2009: Fosun International increased its holding of Focus Media by 1.73 percentage point for $16.25 million (26,14%)

. 1 July 2009: Fosun International acquired additional shares in Focus Media bringing its holding in the company to 30%.

Between nov 2008 and Feb 2009, Fosun International increased its holding of Focus Media to 26,14%,  for a total investment of $279.8 million.

ABOUT FOCUS MEDIA HOLDING LIMITED

Focus Media Holding Limited (Nasdaq: FMCN) operates China’s largest lifestyle community media network, tracking the lifestyle of the consumers and using its media advertising platforms for residential communities, office buildings, shopping malls and movie theaters.  Through its multi-platform digital media platforms, as of March 31, 2011, Focus Media’s digital out-of-home advertising network had approximately 219,000 LCD displays (including the LCD display network and in-store network) and approximately 378,000 advertising in-elevator poster and digital frames, installed in 184 cities throughout China

SOURCE Focus Media Holding Limited (6/07/2011)

IN THE PRESS:

Focus Media To Buy Back 1.96M ADS At 5% Discount (WSJ, 6/07/2011)

Fosun Acquisition of Big Focus Media Stake Riles Sina (Chinastakes.com, 23/02/2009)

. Fosun International added holding of Focus Media in challenge of Sina poison pil  (chinasecurities.com, 10/02/2009)
. Fosun increases stake in Focus Media before Sina acquisition (chinadaily.com.cn, 25 12 2008)

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