Carlyle Group led consortium to buy Chinese display-advertising provider Focus Media for $3.7 bn

A consortium led by US private equity firm Carlyle Group yesterday agreed to buy China's largest display-advertising provider Focus Media Holding Ltd for about $3.7 billion.

Giovanna Parent Ltd and Giovanna Acquisition Ltd  will buy Focus Media for $5.50 a share or $27.50 per American depositary share, each representing five shares, a 15 per cent premium to Focus Media's previous close.

Post closing, Focus Media will be owned by Giovanna Parent, an investment vehicle of Chinese conglomerate Fosun International, which together with Focus Media chairman and CEO Jason Nanchun Jiang, owns about 35.5 per cent of Focus Media, and Giovanna Investment Holdings, an entity owned and controlled by Carlyle, FountainVest Partners, CITIC Capital Partners and China Everbright.

Founded in 2003, Focus Media operates China's largest lifestyle targeted interactive digital media network. The company offers liquid crystal display (LCD) network using audiovisual digital displays at several outdoor sites in China.

The Shanghai-based company operates around 170,000 flat-panel displays in about 90,500 commercial buildings covering over 90 cities, while its in-store network targets shoppers through 49,000 flat panel displays installed in more than 2,700 hypermarkets, supermarkets and convenience stores in China.

Focus Media has made several acquisitions, prominent among them are the 2005 purchase of Framedia, operator of the largest in-elevator poster frame advertising network in China and the 2006 acquisition of ACL, an advertiser in more than 1,700 movie screens at more than 280 movie theaters and throughout China.