AirMedia announces transfer agreement with Jiangsu Hong Zhou Investment
AirMedia Group announced that Beijing Linghang Shengshi Advertising one of the variable interest entities of the Company, Herman Guo, the Chairman and CEO of the Company, and Qing Xu, the director and executive president of the Company have entered an equity transfer agreement with Jiangsu Hong Zhou Investment, an independent third party to sell 20.32% equity interest of Airmedia Group for an initial transfer price of RMB580M in cash as adjusted pursuant to the Agreement. Among the total Initial Consideration, the consideration payment of RMB200M will be made in three installments pursuant to the Agreement. Meanwhile, Sellers are obligated to repurchase the equity interests in the Target if the listing/restructuring applications are not duly submitted or the approvals from the competent securities regulatory department are not secured, each within a specified period provided in the Agreement, for the repurchase price as calculated pursuant to the Agreement. In addition, subject to certain conditions provided in the Agreement, the Initial Consideration may be incremented if the Buyer would successfully re-transfer the 20.32% of the equity interest in the Target to a third party above the Initial Consideration or the Buyer makes profit or should have made profit on selling its equity securities in the Target after the completion of listing/restructuring of the Target.