BEIJING, April 7, 2015 /PRNewswire/ -- AirMedia Group
Inc. ("AirMedia" or the "Company") (Nasdaq: AMCN), a leading
operator of out-of-home advertising platforms
in China targeting mid-to-high-end consumers, today
announced that Beijing Shengshi Lianhe Advertising Co., Ltd., a
variable interest entity in China, which it currently
controls through contractual arrangements (the "VIE structure"),
has entered into a share transfer agreement to sell 5% equity
interest of AirMedia Group Co., Ltd. ("AM Advertising") to Shenzhen
Liantronics Co., Ltd, a company listed on
the Shenzhen Stock Exchange (Shenzhen Stock
Exchange Code: 300269) for a consideration of
RMB 150 million in cash (the
"Transaction"), which reflected the total valuation of AM
Advertising of RMB3 billion.
The payment of the Transaction is expected to be completed
within 10 working days of the completion of the share transfer.
AM Advertising is a consolidated affiliated entity of AirMedia.
AirMedia will restructure AM Advertising for the Transaction. After
the restructuring, AM Advertising will own and operate all
AirMedia's media business in airports and all the billboard and LED
media out of the airports, excluding gas station media network.
After the restructuring, all AirMedia's other businesses, including
but not limited to in-flight Wi-Fi business, on-train Wi-Fi
business, digital TV-screens on airplanes, and gas station media
network will be transferred out of AM Advertising and not form part
of the Transaction.
"Media companies have been enjoying higher PE multiples and
valuation in China's local stock
exchanges. We believe the Transaction is a good way to increase our
shareholder value. We have made exciting developments on our
transformation into a leading in-flight and on-train Wi-Fi operator
in China. We will continue to focus on our transformation,
which, we believe, has a brilliant future for the Company,"
remarked Herman Guo, chairman and chief executive officer
of AirMedia.
About AirMedia Group Inc.
AirMedia Group Inc. (Nasdaq: AMCN) is a leading operator of
out-of-home advertising platforms in China targeting mid-to-high-end consumers.
AirMedia operates the largest digital media network in China dedicated to air travel advertising.
AirMedia operates digital frames in most of the 30 largest airports
in China. In addition, AirMedia
sells advertisements on the routes operated by seven airlines,
including the four largest airlines in China. In selected major airports, AirMedia
also operates traditional media platforms, such as billboards and
light boxes, and other digital media, such as mega-size LED
screens.
In addition, AirMedia has obtained exclusive contractual
concession rights until the end of 2020 to develop and operate
outdoor advertising platforms at Sinopec's service stations located
throughout China.
For more information about AirMedia, please visit
http://www.airmedia.net.cn.
About Shenzhen Liantronics Co., Ltd
Shenzhen Liantronics Co., Ltd plays a leading role in LED
display industry, which provides system solutions for medium and
high-end LED full color display products. As a state-level
high-tech enterprise with registered capital of 73.58 million RMB and net assets of 500 million RMB, Liantronics is specializing in
LED application products from developing, manufacturing, sales to
service.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expect," "anticipate," "future," "intend," "plan,"
"believe," "estimate," "confident" and similar statements. Among
other things, the Business Outlook section and the quotations from
management in this announcement, as well as AirMedia Group Inc.'s
strategic and operational plans, contain forward-looking
statements. AirMedia may also make written or oral forward-looking
statements in its reports to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that
are not historical facts, including statements about AirMedia's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of important factors could cause actual
results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties
include, but are not limited to: if advertisers or the viewing
public do not accept, or lose interest in, AirMedia's air travel
advertising network, AirMedia may be unable to generate sufficient
cash flow from its operating activities and its prospects and
results of operations could be negatively affected; AirMedia
derives most of its revenues from the provision of air travel
advertising services, and any slowdown in the air travel
advertising industry in China may
materially and adversely affect its revenues and results of
operations; AirMedia's strategy of expanding its advertising
network by building new air travel media platforms and expanding
into traditional media in airports may not succeed, and its failure
to do so could materially reduce the attractiveness of its network
and harm its business, reputation and results of operations; if
AirMedia does not succeed in its expansion into gas station,
in-flight internet services and in-air multimedia platform or other
outdoors media advertising, its future results of operations and
growth prospects may be materially and adversely affected; if
AirMedia's customers reduce their advertising spending or are
unable to pay AirMedia in full, in part or at all for a period of
time due to an economic downturn in China and/or elsewhere or for any other
reason, AirMedia's revenues and results of operations may be
materially and adversely affected; AirMedia faces risks related to
health epidemics, which could materially and adversely affect air
travel and result in reduced demand for its advertising services or
disrupt its operations; if AirMedia is unable to retain
existing concession rights contracts or obtain new concession
rights contracts on commercially advantageous terms that allow it
to operate its advertising platforms, AirMedia may be unable to
maintain or expand its network coverage and its business and
prospects may be harmed; a significant portion of AirMedia's
revenues has been derived from the six largest airports and four
largest airlines in China, and if
any of these airports or airlines experiences a material business
disruption, AirMedia's ability to generate revenues and its results
of operations would be materially and adversely affected;
AirMedia's limited operating history makes it difficult to evaluate
its future prospects and results of operations; and other risks
outlined in AirMedia's filings with the U.S. Securities and
Exchange Commission. AirMedia does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
Investor Contact:
Raymond
Huang
Senior Director of Investor Relations
AirMedia Group Inc.
Tel: +86-10-8460-8678
Email: ir@airmedia.net.cn
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/airmedia-sells-5-equity-interest-of-its-advertising-business-for-rmb150-million-300062057.html
SOURCE AirMedia Group Inc.