VisionChina Media Inc., China's largest out-of-home digital television, announced Monday to sell its subway TV ad business for 780M yuan (US$119M) to LED product maker Ledman Optoelectronic.
The sale comes via an equity transfer agreement from its subsidiaries VisionChina Media Group and Shenzhen HDTV Industrial Investment. The sellers transferred the subway business to VisionChina New Culture, which was sold entirely to Ledman.
The deal means that VisionChina will indirectly own about 5.6% of Ledman. Ledman is paying 390M yuan in cash and the other 390M yuan in 20.7M newly issued shares of Ledman valued at 18.8 yuan/share. The cash will be paid in two installments.
Ledman is a leading manufacturer and distributor of LED products in China, and listed on the Shenzhen Stock Exchange. It has been a strategic partner of the Chinese Football Association. This move will help the LED manufacturer expand sports media businesses.