logo
  Join        Login             Stock Quote

Focus Media Holding (FMCN) To Be Taken Private For $3.7B

 December 19, 2012 02:30 PM
 


(By Balaseshan) Focus Media Holding Ltd. (NASDAQ: FMCN), which operates liquid crystal display (LCD) display network in China, said it has agreed to be bought by Giovanna Parent Ltd. in a going private transaction for about $3.7 billion.

Focus Media has entered into a definitive Agreement and Plan of Merger with Giovanna Parent and Giovanna Acquisition Ltd. Giovanna Parent will acquire Focus Media for $5.50 per ordinary share or $27.50 per American depositary share, each representing five shares, a 15% premium to Focus Media's previous close.

Giovanna Acquisition will merge with and into Focus Media, with the company continuing as the surviving corporation and a wholly-owned subsidiary of Giovanna Parent.

[Related -Started Day Mixed, Came Back With A Roar]

The company's board, acting upon the unanimous recommendation of an independent committee, approved the transaction and resolved to recommend its shareholders vote to authorize and approve.

The company is not permitted to pay any dividends or repurchase any of its shares pending consummation of the transaction. As a result, the company's board has suspended its previously announced share repurchase program and dividend policy.

The transaction is currently expected to close during the second quarter of 2013. If completed, the transaction will result in Focus Media becoming a privately-held company and its ADSs will no longer be listed on the NASDAQ Global Market.

Certain financial institutions have agreed as underwriters, bookrunners and/or mandated lead arrangers to arrange and/or provide or underwrite $1.525 billion in the aggregate of debt financing for the transaction, subject to certain conditions.

[Related -Stocks End Mixed Amid Growth Worries; Sears Holdings (SHLD) Gains]

FMCN is trading up 7.74% at $25.76 on Wednesday. The stock has been trading between $16.80 and $30.08 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageBuffett's Market Indicator Flashes Red, Prepare To Sell

With each passing month, it's becoming evident that the current bull market has slowed from a gallop to a read on...

article imagePBoC joins other major central banks with unconventional monetary policy action

Softer than expected economic growth in China (see discussion) has finally spurred the PBoC into action. read on...

article imageA Buyback Boost?

Are stock buybacks the only thing keeping this bull market read on...

article imageGold Slides On Perfect Storm For Dollar

For all the anticipation surrounding the delivery of the Fed’s statement in the run-up to the September read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.