On December 19, 2012, Focus Media Holding Limited (Nasdaq: FMCN) announced that it has entered into a definitive Agreement and Plan of Merger in connection with its going-private transaction, which is currently expected to close during the second quarter of 2013. The transaction values Focus Media’s equity at approximately US$3.7 billion on a fully diluted basis, and would be China’s largest leverage buyout to date. Focus Media operates China’s largest lifestyle-targeted, interactive digital media network.
The private equity sponsor group participating in the transaction includes the affiliates of The Carlyle Group, FountainVest Partners, CITIC Capital Partners and China Everbright Limited. After the completion of the transaction, Focus Media will be beneficially owned by the private equity consortium, Jason Nanchun Jiang (the Chairman and CEO of Focus Media) and Fosun International Limited. In addition, nine banks have agreed to arrange US$1.525 billion in the aggregate of debt financing for the transaction.
Zhong Lun has acted as the PRC counsel for the private equity sponsor group in this transaction. The legal team from Zhong Lun is led by Anthony Zhao, and its core members include William Jia, Fang Kun, Ada Jiang and Wang Jin on the investment and merger aspects as well as Shirley Lu and Will Lu on the financing aspects.