VisionChina Media to Acquire DMG for $160m
According to VisionChina, the total consideration for the transaction is $160m in cash and shares payable by the company to eligible shareholders of DMG in three installments over two years including the first installment of $100m payable at the closing of the transaction. Two subsequent installments of $30m each will be paid on the first and second anniversaries, respectively, of the closing of the transaction. Of the initial $100m, $40m will be paid in cash and $60m will be paid in shares.
The transaction has been approved by both companies' boards of directors and is expected to close, subject to the completion of customary due diligence and closing conditions in the first quarter of 2010.
The company has added that upon closing, the combined company will operate bus networks in 18 of China's most affluent cities, including Beijing, Guangzhou and Shenzhen. The combined company will also have exclusive subway networks in eight key cities in China, including all four of China's Tier I cities, as well as on Hong Kong's Airport Express line.
Limin Li, chairman and chief executive officer of VisionChina Media, said: “Combining our company with DMG is an exciting and important development for VisionChina and our industry, with the largest mobile television advertising network in China, covering each of China's most economically developed Tier I cities.
“This combination will fully integrate VisionChina's leading outdoor digital mobile television advertising network and DMG's national subway mobile television advertising network into one seamless network, reaching the above-ground bus network and the below-ground subway network in cities nationwide.”
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