Qin Jia Yuan Issuing Consideration Shares for Acquisition of
HONG KONG, June 8 /PRNewswire-Asia/ -- Qin Jia Yuan Media Services Company Limited (HKEx Stock Code: 2366, hereafter referred to as "QJY" or "the Group") is pleased to announce that the acquisition of 51% of the issued share capital of Rich State Media Enterprises Limited ("Rich State") has been completed on 8 June 2010.
Rich State is a company incorporated in Hong Kong, major asset of which is its 45% equity interest in CBS Outdoor (Beijing) Limited (hereafter referred to as "CBSO (Beijing)"), AAAAAA it the largest shareholder of CBSO (Beijing). CBSO (Beijing) has been engaging in outdoor media advertising business in the PRC for more than 5 years and its accumulated profit before taxation for the last three yearAAAAceeded RMB70 million.
The consideration of the acquisition amounted to HK$75,000,000, which is satisfied partly in cash and partly by QJY issuing new shares, which are subject to a lock up period of 10 months from 8 June 2010, at the price of HK$1.788 per share, representing a premium of approximately 20.8% over the closing price of HK$1.48 per share as quoted on the Hong Kong Stock Exchange on 7 June 2010.
The completion of the acquisition of Rich State will not only expand the Group's outdoor business portfolio and bring synergy to the exclusive advertising agency rights in respect of outdoor news LED screens previously granted by Xinhua News Agency and other outdoor business, but also enable the Group to achieve fruitful results in addition to that from TV advertising, its core businesses, in the year.
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