JCDecaux to acquire minority stake in Clear Media as part of investor consortium
Outdoor advertising company JCDecaux announced it will acquire a minority stake in Clear Media Limited as part of an investor consortium. The deal values Clear Media at approximately HK$3.86 billion.
JCDecaux SA announced on March 31, 2020, that it will acquire a minority stake in Clear Media Limited as part of an investor consortium. The company is acquiring a stake in a special purpose vehicle that has made a voluntary conditional cash offer to acquire all shares in the Hong Kong-listed company Clear Media.
The offer price is HK$7.12 per share, valuing Clear Media's entire issued share capital at approximately HK$3.86 billion. JCDecaux will fund 23% of this amount, or HK$887 million. The consortium also includes Clear Media's Chief Executive Officer Han Zi Jing, who holds 40%, Antfin (Hong Kong) Holding Limited at 30%, and China Wealth Growth Fund III L.P. at 7%.
Clear Media is the largest operator of bus shelter advertising panels in the People's Republic of China, with over 57,000 panels across 25 cities as of December 31, 2019. JCDecaux has operated in Hong Kong since 1999 and Mainland China since 2005, establishing itself as a leading out-of-home media company in transport advertising within China.
The offer is conditional upon the satisfaction or waiver of certain conditions outlined in the joint announcement by the offeror and Clear Media. This acquisition is expected to strengthen JCDecaux's position in the Asian market, particularly within China's burgeoning out-of-home advertising sector.