Jiangsu Hongda New Material, a chemicals company listed at China’s Shenzhen Stock Exachange, yesterday announced it had reached a preliminary agreement to acquire 100% of Focus Media in exchange for stock, assets and cash.
Focus Media, one the country’s largest outdoor advertising companies, delisted in the U.S. after a wave of negative publicity after a report by shortseller Muddy Waters and its subsequent privatization in a transaction led by Carlyle worth $3.8 billion. Chinese investment firm Fosun International held a 17% stake in Focus Media as of the end of last year.
Chinese media this week cited Hongda as the most likely target for a backdoor listing at home. Hongda reported net profit of $2 million last year after a loss of $140 million in 2013.
Hongda’s announcement today didn’t provide financial details.
Focus Media’s chairman Jason Jiang ranked No. 297 on the 2014 Forbes China Rich List with wealth $850 million.
Fosun Media is a licensing partner of Forbes Media.
--with Maggie Chen
--Follow me on Twitter @rflannerychina
