Focus Media borrowed Qixi Holdings to be approved to become the first share of overseas returnees

Qixi Holdings (002027) announced today that Focus Media's backdoor restructuring plan was conditionally approved by the China Securities Regulatory Commission yesterday. Focus Media will become the first company to delist from U.S. stocks and then enter A-shares. Qixi Holdings will resume trading at the market opening today.

Qixi Holdings (002027) announced today that Focus Media's backdoor reorganization plan was conditionally approved by the China Securities Regulatory Commission yesterday; not long ago, on November 11, Qixi Holdings announced that Focus Media's backdoor reorganization plan had been approved in principle by the Ministry of Commerce. Focus Media will become the first company to delist from U.S. stocks and then enter A-shares. Qixi Holdings will resume trading when the market opens today.

In August this year, HTC New Materials, which had been waiting for half a year, was terminated by Focus Media. Subsequently, Focus Media and Qixi Holdings held hands in a flash.

On September 1, Qixi Holdings announced that it would replace all assets and liabilities as of the benchmark date for asset evaluation with the equivalent of the 100% equity interest in Focus Media held by all shareholders of Focus Media. The 100% equity interest in Focus Media was valued at 45.7 billion yuan. Qixi Holdings plans to purchase assets at a price of 880 million yuan. The difference between the placed assets and the placed assets is 44.82 billion yuan. Part of the difference will be purchased by Qixi Holdings from all shareholders of Focus Media by issuing shares and paying cash. Among them, cash was paid to FMCH to purchase the difference corresponding to its 11% equity stake in Focus Media; shares were issued to other shareholders of Focus Media other than FMCH to purchase the difference corresponding to its 89% equity stake in Focus Media.

Qixi Holdings also plans to use the inquiry and issuance method to raise matching funds from non-public offerings of shares to no more than 10 specific targets, with a total amount of no more than 5 billion yuan, which will be used to pay the cash consideration of FMCH in this transaction. After the transaction is completed, Focus Media will become the first listed company to delist from U.S. stocks and then enter A shares. Media Management(HK) will hold 24.77% of Qixi Holdings and become the company's controlling shareholder company. The actual controller will be changed to Jiang Nanchun, head of Focus Media.

Focus Media was established in 2003. Focus Media's main products are building media (including building video media and frame media), cinema media, store terminal video media, etc., covering the work, life, entertainment and consumption scenarios of mainstream consumers in the city.

In 2005, during the wave of listing of Chinese stocks in the United States, Focus Media landed on NASDAQ in the United States, with an issue price of US$17/share and raised US$172 million. Focus Media's share price once rose to more than US$60, but has fallen rapidly since 2008, with the lowest share price being less than US$6.

After being short-listed by Muddy Waters, Focus Media was invited to be privatized and completed its privatization in May 2013 and delisted from Nasdaq. In June this year, HTC New Materials announced a "marriage" with Focus Media. However, not long after, Zhu Dehong, the actual controller of Hongda Xincai, was investigated by the China Securities Regulatory Commission and this major asset reorganization was suspended in accordance with relevant regulations. On the same day HTC New Materials announced the news, Qixi Holdings announced the news of joining hands with Focus Media.

Since the beginning of this year, the return of Chinese stock companies to A-shares has attracted much attention, including Giant Network's recent announcement of a backdoor Century Cruises and SouFun Holdings 'backdoor Wanli shares.

[Original Announcement]

Qixi Holdings: Announcement on the company's material asset reorganization matters being reviewed and approved by the Merger and Reorganization Review Committee of Listed Companies of China Securities Regulatory Commission and the resumption of trading of the company's shares

Editor: vian