China’s biggest advertising group acquires major stock of the BVI company

China’s advertising company FOCUS Media Holdings Ltd. has entered an agreement with Appreciate Capital Limited (ACL), a company registered in the British Virgin Islands, which specializes in leasing screen time from movie theaters in Chinese cities. By this deal, Focus Media Holdings receives 70% of shares of the ACL.

Focus Media, the largest overseas-listed advertising company in China, has informed on its plans in its second-quarter report, having noted that the initial deposit to ACL shareholders made US$2.8 million. Further details of expected transaction, such as ACL’s business locations and network size, were not disclosed. The procedure of the acquisition will be finished next month.

Through purchasing major stock of the BVI company, Focus Media plans to enter the movie theater advertising market and develop its business – the company’s main specialization is placing flat-panel TVs displaying ads in office buildings and other locations.

The company’s chief financial officer Daniel Wu said that “extending the business into movie theater is another way to capture and attract the eyeballs of urban consumers”.

It is worth noting that revenues of Focus Media grew 247% in a year, and in the 2nd quarter of the year they reached 50.6 million USD.

As to advertising revenue from company’s “commercial location network”, it increased 122.2% over the same period last year and 44.7% quarter-on-quarter to 31.1 million USD.

Revenue of Focus Media in the 3rd quarter is predicted to range from 58 million USD to 60 million USD.

Leave a Reply

You must be logged in to post a comment.