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Focus Media announced that the company plans to acquire the shares of Chengdu Xinchao Media Group Co., Ltd. by issuing shares and paying cash, and recently received additional restrictive conditions from the State Administration of Market Supervision and Administration to approve this operator-centered antitrust review decision. Additional obligations include continuing to perform existing customer contracts, maintaining service levels, the actual annual transaction price must not exceed the corresponding city price 24 months before entry into force, providing fair and non-discriminatory services, relinquishing the right to exclusive terms and conditions, and not agreeing on exclusive and automatic renewal clauses for new contracts; and improving the anti-monopoly compliance system. The restrictive conditions can be lifted after 5 years have expired. The transaction still requires approval such as review by the Shenzhen Stock Exchange and the approval of the Securities Regulatory Commission for registration, etc., so there is uncertainty.
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Focus Media announced that the company plans to acquire the shares of Chengdu Xinchao Media Group Co., Ltd. by issuing shares and paying cash, and recently received additional restrictive conditions from the State Administration of Market Supervision and Administration to approve this operator-centered antitrust review decision. Additional obligations include continuing to perform existing customer contracts, maintaining service levels, the actual annual transaction price must not exceed the corresponding city price 24 months prior to entry into force, providing fair and non-discriminatory services, waiving the right to exclusive point terms and not agreeing on exclusive and automatic contract renewal clauses, and improving the anti-monopoly compliance system. The restrictive conditions can be lifted after 5 years have expired. The transaction still requires approval such as review by the Shenzhen Stock Exchange and the approval of the Securities Regulatory Commission for registration, etc., so there is uncertainty.
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