CITIC Capital, FountainVest to exit China's Focus Media

CITIC Capital owns a 7.41% stake, or 647 million shares, in Focus Media, while FountainVest has a 6.77% stake or 591 million shares, according to separate filings. Based on Focus Media trading price of around RMB13 as of mid-morning on June 20, CITIC Capital and FoutainVest's interests are worth RMB8.41 billion ($1.23 billion) and RMB7.68 billion.

However, they must comply with new rules announced last month intended to slow the pace at which major shareholders reduce their stakes in public companies so as to avoid large-scale dumping. For instance, shares sold through block trades should amount to less than 2% of Focus Media’s total issued shares in any 90 consecutive days.

CITIC Capital and FountainVest were part of an investor group – alongside The Carlyle Group, China Everbright, Fosun Group, Primavera Capital, and CEO Jason Jiang – that completed a $3.7 billion privatization of Focus Media in 2013. Prior to its re-listing in China, the offshore investors made a partial exit to 36 domestic institutional investors. On re-listing in Shenzhen through a reverse merger, Focus Media was worth RMB45.7 billion ($7 billion).

As of March, Fosun and Carlyle owned 6.94% and 6.77% of the company, respectively.  

Founded in 2003, Focus Media operates an advertising network in various Chinese urban locations. The company uses audiovisual television displays that are placed primarily in high-traffic areas of commercial office buildings such as in lobbies and near elevators, as well as in large retail chain stores and other venues.

Focus Media’s revenue rose 18.38% year-on-year to RMB10.21 billion last year, while net profit jumped 31.34% to RMB4.45 billion.

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• Topics
• Greater China
• Open market
• Technology
• Consumer
• China
• TMT
• Fountainvest Partners
• CITIC Capital Partners
• Exit