SHANGHAI, Sep. 23, 2009 (PRNewswire-Asia) -- Focus Media Holding Limited (Nasdaq: FMCN), China's leading multi-platform digital media company, today announced that Executive Chairman Jason Jiang and the Company have entered into a definitive agreement pursuant to which the Company will issue and sell to Mr. Jiang, and Mr. Jiang will subscribe for and purchase, 75,000,000 ordinary shares of the Company at a subscription price of US$1.899 per share (equivalent to US$9.495 per ADR), representing the average closing sale price of the Company's shares (adjusted for the share-to-ADS ratio) during the twenty consecutive trading day period immediately preceding the date hereof. The aggregate subscription price is US$142,425,000. The shares subscribed for by Mr. Jiang will be subject to a six month lock-up and will have customary registration rights pursuant to a Registration Rights Agreement entered into between the Company and Mr. Jiang concurrently with the subscription. Following Mr. Jiang's subscription, he will hold approximately 19% of the Company's outstanding issued shares. In accordance with the definitive agreement, Mr. Jiang has the right to nominate one new director to take the place of the current executive director.
In order to incentivize the management team and employees, the Company further announced that the Company plans to cancel all outstanding options issued under its 2007 share option plan and to issue restricted shares under its 2007 share option plan to the management team, employees and directors of the Company as an incentive plan.
Jason said, "Since I resumed my position as chief executive officer on January 26 of this year, the core capabilities of Focus Media, especially its ability to adapt to change in the market, has been improving greatly despite the macro headwind and the challenging overall advertising market we are facing." He further added, "No matter what happens in the macro economic environment, I still believe in the long-term development of the Chinese economy as well as in the steady growth of the Chinese advertising market. This significant subscription for Focus Media's shares by me in this instance testifies to my strong confidence in the core values and development of Focus Media's business in the long run.
