China Trading Stocks

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Re: AMCN - English news released after the close

http://ir.airmedia.net.cn/phoenix.zhtml?c=214947&p=irol-newsArticle&ID=2032886

AirMedia Sells 5% Equity Interest of its Advertising Business for RMB150 million
BEIJING, April 7, 2015 /PRNewswire/ -- AirMedia Group Inc. ("AirMedia" or the "Company") (Nasdaq: AMCN), a leading operator of out-of-home advertising platforms in China targeting mid-to-high-end consumers, today announced that Beijing Shengshi Lianhe Advertising Co., Ltd., a variable interest entity in China, which it currently controls through contractual arrangements (the "VIE structure"), has entered into a share transfer agreement to sell 5% equity interest of AirMedia Group Co., Ltd. ("AM Advertising") to Shenzhen Liantronics Co., Ltd, a company listed on the Shenzhen Stock Exchange (Shenzhen Stock Exchange Code: 300269) for a consideration of RMB 150 million in cash (the "Transaction"), which reflected the total valuation of AM Advertising of RMB3 billion.

The payment of the Transaction is expected to be completed within 10 working days of the completion of the share transfer.

AM Advertising is a consolidated affiliated entity of AirMedia. AirMedia will restructure AM Advertising for the Transaction. After the restructuring, AM Advertising will own and operate all AirMedia's media business in airports and all the billboard and LED media out of the airports, excluding gas station media network. After the restructuring, all AirMedia's other businesses, including but not limited to in-flight Wi-Fi business, on-train Wi-Fi business, digital TV-screens on airplanes, and gas station media network will be transferred out of AM Advertising and not form part of the Transaction.

"Media companies have been enjoying higher PE multiples and valuation in China's local stock exchanges. We believe the Transaction is a good way to increase our shareholder value. We have made exciting developments on our transformation into a leading in-flight and on-train Wi-Fi operator in China. We will continue to focus on our transformation, which, we believe, has a brilliant future for the Company," remarked Herman Guo, chairman and chief executive officer of AirMedia.