Upon completion of the acquisition, the group will significantly expand its TV advertising business into different parts of China, especially Southern China, and further strengthen its unique cross-business media platform.
According to the agreement, the total consideration of HK$45m consists of a cash consideration of HK$22.5m and HK$9m payable by way of issue and allotment of 5,890,438 new shares (consideration shares), representing approximately 0.70 percent of the existing issued share capital and the enlarged issued share capital.
The consideration share was issued at a price around HK$1.52, representing a premium of approximately 10 percent above the average closing share price of QJY in the 10 trading days up to and including 10th March 2011. The balance of the consideration in the sum of HK$13.5m payable in cash, to be financed by internal resources is to be settled within 13 months from the date of completion.
With the acquisition of the Clear Light Group, it is expected that the net sales of QJY's TV advertising business unit will increase significantly. Combined with QJY's existing exclusive TV station underwriting arrangements in Central China, QJY now provides broad geographic coverage to its advertising clients for TV advertising.
The acquisition is one of several strategic steps undertaken by QJY to expand its cross-media platform. Together with QJY's strengths in TV drama production and out-of-home LED advertising, QJY brings to its media and advertising partners a broad and unique set of media assets.
Leung Anita Fung Yee Maria, CEO of the group, said: â€œThe acquisition opens the door for the Group's strategic expansion into the lucrative advertising market in southern China. The Group would benefit from the cross-selling opportunities between the clients of QJY and Clear Light Group and further enhanced its uniquely positioned cross-media business platform.
â€œThrough our expert management team of media professionals with decades of experience in China, QJY strives to expand its client base, increase sales and develop into one of the strongest cross-media players in the country.â€
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