Warburg Pincus exits China Tulip Media via trade sale

Shenzhen-listed Shanghai New Culture Media filed its acquisition plan in June of last year but required regulatory approval to proceed. According to a regulatory filing, New it will take a 100% interest in Tulip for a combination of cash and shares.

Warburg Pincus has sold its 19.14% stake - or 32 million shares - for RMB230 million ($37 million) in cash. Meanwhile, Shanghai Yidezeng Equity Investment has made a partial exit, swapping its 0.88% stake for RMB10.6 billion plus shares in New Culture Media.

Shanghai-based Tulip was founded in 1998 by an Olympic swimming gold medalist Yong Zhuang and an outdoor media veteran Min Wang. The company focuses on large LED displays in prime metropolitan areas across China. It has more than 200 screens in 90 cities, covering Shanghai, Beijing, Guangzhou and selected second-tier cities.

According to AVCJ Research, Tulip Media raised a total of $40 million from JCDecaux and Warburg Pincus in 2006. The latter commited about $26 million. One year later, the firm received $30 million from Credit Suisse Private Equity Asia. In 2011, Shanghai Yidezeng committed a further RMB10.24 million.

Tulip Media was seeking for an overseas listing in 2008 but the plan was aborted.

In December 2013, Sailing Capital teamed up with New Culture Media to launch a RMB1 billion ($165 million) culture fund. The Sailing New Culture Private Equity Fund, managed by Sailing Capital, received RMB200 million from New Culture Media. It primarily focuses on culture, media, travel, advertising, gaming and advertising businesses.

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• Topics
• Greater China
• Exits
• Media
• China
• Exit
• Warburg Pincus Asia
• Media
• Trade sale
• M&A