Focus Media Holding Enters into Definitive Merger Agreement for Going Private (Asia)

Source: Focus Media

Chinese digital media operator Focus Media has agreed to a merger agreement with holding company Giovanna Parent and its subsidiary Giovanna Acquisition, in which Focus Media will be acquired for US$27.50 per American Depositary Share (equivalent to five ordinary shares). Following the merger, Giovanna Parent will be owned by Focus Media chairman Jason Nanchun Jiang and funds associated with a consortium of private equity firms including The Carlyle Group, FountainVest Partners, CITIC Capital and China Everbright Investment Management. Existing Focus Media investor Fosun Group International will also retain a stake in the company. Following the completion of the transaction, Focus Media plans to delist from the NASDAQ Stock Market. The transaction values Focus Media’s equity at US$3.7 billion.