BEIJING, July 6, 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, as
well as a first-mover in the in-flight and on-train Wi-Fi market,
today announced that a special committee of independent directors
of the Company's board of directors (the "Special Committee") has
retained Duff & Phelps, LLC and Duff & Phelps Securities,
LLC (collectively referred to as "Duff & Phelps") as its
financial advisor and Kirkland & Ellis ("Kirkland & Ellis")
as its international legal counsel.
As previously announced, the Company's board of directors formed
the Special Committee to consider a "going-private" transaction
(the "Transaction") for $3.00 in cash
per ordinary share or $6.00 in cash
per American depositary share (each representing two ordinary
shares), proposed by Mr. Herman Man
Guo, Chairman of the Board and Chief Executive Officer of
the Company, on behalf of himself and management of the Company, in
a preliminary non-binding proposal letter, dated June 19, 2015.
Duff & Phelps and Kirkland & Ellis will assist the
Special Committee in its work in connection with the Transaction
and any potential alternatives. No decisions have been made by the
Special Committee with respect to the Company's response to the
Transaction. There can be no assurance that any definitive offer
will be made, that any agreement will be executed or that this or
any other transaction will be approved or consummated. The Company
does not undertake any obligation to provide any updates with
respect to this or any other transaction, except as required under
applicable law.
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, as
well as a first-mover in the in-flight and on-train Wi-Fi market.
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.
AirMedia, which is in the process of transforming into a leading
in-flight and on-train Wi-Fi operator in China, has obtained concession rights to
install and operate Wi-Fi systems on the airplanes operated by
Hainan Airlines Group and on the trains operated by several main
railway bureaus in China,
including Beijing Railway Bureau, Shanghai Railway Bureau and
Guangzhou Railway (Group) Corporation.
For more information about AirMedia, please visit
http://www.airmedia.net.cn.
Cautionary Statement concerning Forward Looking
Statements
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. 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
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.
AirMedia Investor Contact
Raymond Huang
Senior Director of Investor Relations
AirMedia Group Inc.
Tel: +86-10-8460-8678
Email: ir@airmedia.net.cn
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SOURCE AirMedia Group Inc.