Focus Media to Acquire Xinchao Media for 8.3 Billion Yuan; Shares Down 3%

MT Newswires Live

04/11

Focus Media Information Technology (SHE:002027) plans to acquire elevator advertising counterpart Xinchao Media Group for 8.3 billion yuan, according to a Shenzhen Stock Exchange filing on Thursday.

The Chinese advertising company will buy 100% of Xinchao Media's stake from 50 shareholders, including Baidu (HKG:9888) and some of JD.com's (HKG:9618) units.

Xinchao Media will become a subsidiary of Focus Media after the transaction. Zhang Jixue, Xinchao's chairman, will become the vice president and chief growth officer of Xinchao.

Focus Media's shares dropped less than 3% in recent trade.

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