focus-media-shells-out-350-million-for-cgen

Focus Media shells out $350 million for CGEN

Focus Media consolidates its position in outdoor advertising by offering up to $350 million for CGEN, representing a multiple of 17 times trailing sales.
Focus Media, China's largest digital media group, is to buy CGEN Digital Media for up to $350 million in a combined cash and stock deal.

Focus Media will buy 100% of CGEN, paying $168.4 million in cash and up to $181.6 million in cash and Focus Media shares. Focus Media shares have been valued at $53.42 per ADS, with each ADS representing five Focus Media shares. The second tranche of the payment is contingent upon CGEN meeting pre-defined earnings targets over a two-year period after the deal closes.

CGEN operates an in-store television advertising network in China, inside large-format retail chain stores, such as hypermarkets and home-improvement superstores. As of October 2007, CGEN...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222