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Focus Media shareholders approve Carlyle-backed MBO

30 Apr 2013

china wall_lrgFocus Media shareholders have approved a private equity-backed management buyout of the company led by chief executive Jason Nanchun Jiang.

The MBO, which values the advertiser at $3.7bn, is also supported by buyout major Carlyle, Chinese state-backed investor CITIC and private equity firm FountainVest Partners as well as CDH Investments and China Everbright.

The deal includes $1.5bn of debt provided by Bank of America, Deutsche Bank, Credit Suisse and UBS among others.

The consortium initially offered $27 per American depositary share, but later raised the bid to $27.50 per share.

No single investor will hold a majority in the company and there will be no change of control, said the Asian Venture Capital Journal, citing sources familiar with the situation.

This means that the deal is unlikely to be reviewed under China’s anti-monopoly law.

Some of Carlyle’s recent deals in China included the acquisition of the Central Plaza office building in Shanghai for $267m from real estate group Forterra Trust.

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