AirMedia Group Inc. (AMCN) announced that the company, AirMedia Technology (Beijing) Co., Ltd., which is a wholly owned subsidiary of the company in China, Beijing AirMedia Shengshi Advertising Co., Ltd., and Herman Guo have entered into a definitive equity interest transfer agreement with Beijing Longde Wenchuang Fund Management Co., Ltd. to sell 75% equity interest of AirMedia Group Co., Ltd., or AM Advertising, for a consideration of RMB 2.1 billion in cash.
Beijing AirMedia Shengshi Advertising Co., Ltd. is AirMedia's variable interest entity in China as well as the controlling shareholder of AM Advertising, and Herman Guo is deemed as actual controller of AM Advertising under PRC law.
AirMedia has agreed to restructure AM Advertising for the transaction. After the restructuring, AM Advertising is expected to own and operate all AirMedia's media business in airports and all the billboard and LED media outside of airports.
AirMedia Group said it may apply the consideration to dividend payments, and to support its fast growing new business of in-flight and on-train Wi-Fi services. AirMedia will hold an extraordinary general meeting to approve the transaction and the removal of the VIE structure of of AM Advertising.
For comments and feedback contact: editorial@rttnews.com
Business News