Brief: Airmedia to sell 75% equity interest of its advertising business for 2.1 bln Yuan

Yueda Digital Holding

15/06/2015 11:00

June 15 (Reuters) - Airmedia Group Inc  AMCN.O : 
 * Reaches definitive agreement to sell 75% equity interest of its advertising 
   business for RMB2.1 billion 
 * Says deal valued at RMB 2.1 billion 
 * Consideration payment will be made in 2 installments; first installment of 
   RMB800 million 
 * Says Airmedia agrees to restructure am advertising for the transaction 
 * Says to complete the transaction, the company needs to remove the vie 
   structure of am advertising 
 * Airmedia will hold an extraordinary general meeting to approve transaction 
   and removal of vie structure of am advertising 
 * After removal of vie structure of am advertising, a unit of co in China, will 
   buy remaining 25% equity interest of am advertising 
 * Says agreement contains an earnout structure 
 * Says after removal of vie structure, Shenzhen Airmedia information a wholly 
   owned unit in China, will buy 25% stake of am advertising 
 * After execution of agreement, neither party shall arbitrarily terminate deal, 
   or else to pay damages of RMB400 million to counterparty 
 * First installment of RMB800 million to be received within 15 working days 
   after the executions of the agreement and the fulfillment 
 
 * Source text for Eikon  ID:nPn3rxr8L  
 
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