CMC-Backed Privatization Of Charm Communications Won Board Approval

NASDAQ-listed Chinese advertising agency Charm Communications Inc. says it has entered into a definitive agreement with an investor consortium including the company’s founder and chief executive He Dang to take the company private.

The company’s board has also approved the deal.

Hong Kong-based Chinese private equity firm China Media Capital (CMC) is supporting the management buyout of the Beijing-based Charm Communications.

The investor consortium is proposing to pay US$4.70 in cash per American Depositary Share (ADS), or US$2.35 in cash per ordinary share.

The price represents a 17% premium to the company’s closing before the announcement. The deal values the company at US$183 million.

The transaction is expected to close before the end of the third quarter 2014, and is still subject to a shareholder vote.

Last October, Charm Communications first announced that it has received the take-private deal proposal.

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