Salty - here's all I know about it (not much):
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Wednesday, January 12th, 2011
Shares of VisionChina Media Inc (NASDAQ:VISN) went up by 20.67% to trade close at $4.67 after Focus Media (FMCN) announced an investment of $61 million in the company.
A leading mobile digital television network opened at $4.20 and traded in the range of $4.18 – $4.72 with volume of 2.34 million shares traded. The stock has 52 week trading range of $2.51 – $11.85. The company currently has market capital of $336.90 million with total outstanding shares of 72.14 million.
The Company announced that Focus Media, China’s largest digital media company agreed to purchase 15,331,305 newly issued common shares of VisionChina Media for total consideration of $ 61 million. At a price of $3.98 for each VisionChina American depositary receipt it acquired, a 2.8% premium to where the shares closed yesterday.
According to Wall Street Journal, an entity owned by Jason Nanchun Jiang, the chairman and chief executive officer of Focus Media, JJ Media Investment Holding Limited (“JJ Media”) & an entity owned by Limin Li, the chief executive officer, Front Lead Investments Limited (“Front Lead”) each will acquire 1,022,087 shares for about $4 million.
The deal is expected to be completed in January, 2011. At the time of closing of the deal, each of Focus Media and the investors will pay 80% of the consideration and deliver a promissory note in the amount of the remaining 20% of the consideration to VisionChina Media. The payment under the promissory notes will be due on March 31, 2011.
This deal provides FMCN and its entity 15% & 1% stake in company’s outstanding issued shares. It will provide 17.2% stake to Front Lead, an entity beneficially owned by Limin Li. Focus Media, the Investors and VisionChina Media will also enter into a Shareholders Agreement and a Registration Rights Agreement.
Investors strongly believe that this agreement will provide an infusion of capital and a vote of confidence in the company.
VisionChina Media Inc. operates out-of-home advertising network using mobile digital television broadcasts to deliver content and advertising on mass transportation systems in the People’s Republic of China.
AI
