SearchMedia Holdings, one of China’s leading nationwide multi-platform media companies, has completed its acquisition of Zhejiang Continental Advertising in a combination cash and stock transaction. The stock component of the transaction is expected to be payable in 2012, based on Continental’s 2011 financial performance and the Company’s stock price prior to issuance.
Based in Hangzhou, Zhejiang province, Continental is a profitable billboard company which has over 10 years of operating history. Continental maintains a leading market position in Hangzhou, operating billboards in key locations including the central business district and at the Hangzhou Xiaoshan International Airport.
Speaking about the acquisition, Paul Conway, Chief Executive Officer of SearchMedia, stated, “We believe the acquisition of Continental enhances the attractiveness of our outdoor media portfolio specifically in Zhejiang province. Hangzhou, the capital city of Zhejiang province, is ranked eighth in terms of city-level GDP nationwide and has a population of approximately 8 million people in addition to being one of the most popular tourist destinations in China.
“In addition to the important strategic market opportunity presented by this acquisition in Hangzhou, SearchMedia will benefit from the managerial experience of Mr. Li Xiaoying, the founder and general manager of Continental. Mr. Li has over 20 years experience in the advertising industry and will remain as the General Manager of our new SearchMedia subsidiary.
“We believe this acquisition gives us greater ability to pursue additional concession opportunities within an attractive market. We continue to execute the company’s growth strategy of building a leading nationwide advertising company and we have already begun to cross-sell Continental’s billboards within our network,” concluded Mr. Conway.
Location: China, Shanghai
Ref: F231109-519
