HONG KONG, Oct. 11, 2016 /PRNewswire/ -- Asiaray Media Group Limited ("Asiaray" or the "Group;" stock code: 1993), a leading out-of-home media company with a strategic focus on airport and metro line advertising, has entered into a strategic alliance with L Catterton, a private equity firm formed by LVMH, Catterton Holdings, L.L.C. and Groupe Arnault SAS, marking the enhancement of the collaboration between Asiaray and L Capital Asia, a private equity fund sponsored by L Catterton and also one of its key shareholders since listing.
L Catterton is the largest global consumer-focused investment firm with six distinct and complementary fund strategies focusing on consumer buyout and growth investments across North America, Europe, Asia and Latin America, in addition to prime commercial real estate globally. Under the strategic alliance, L Catterton agreed to procure no less than three brands managed by L Catteron each year to enter into advertising contracts in respect of the media resources and Offline & Online ("O&O") advertising solutions provided by Asiaray respectively commencing 1 January 2017 for a period of three years. In the event that the brands managed by L Catterton expand their businesses in China by opening retail shops at the airports with Asiaray presence, L Catterton will also engage Asiaray for its marketing services, including but not limited to O&O advertising solution.
In return of the procurement of these business opportunities with a consideration of HK$3 million, Asiaray will grant L Catterton warrants for the subscription of up to 10 million shares. If the warrants are exercised in full, L Catterton's shareholding in Asiaray will increase further to 7.47% of the enlarged issued share capital. Prior to the subscription, L Catterton owns 5.37% of Asiaray's shareholding through its private equity fund L Capital Asia, one of Asiaray's cornerstone investors during its IPO.
Mr. Vincent Lam, Founder, Chairman, Chief Executive Officer and Executive Director of Asiaray, said, "We have established a long-standing relationship with LVMH, a globally well-known luxury brands owners. Since we went public in 2015, our ties have been further strengthened as it became our cornerstone shareholder through its private equity fund. With this strategic alliance, we are glad to further enhance our relationships with LVMH through L Catterton, cementing closer cooperation with this shareholder cum advertiser and also bringing in additional revenue streams for the company. This is also a proof of their appreciation of our quality out-of-home ('OOH') media resources in both Mainland China and Hong Kong as well as our long-term development prospects."
Mr. Ravi Thakran, Chairman and Managing Partner of L Catterton Asia, said, "We are excited with this new strategic alliance with Asiaray. Asiaray has proven to be a creative and resourceful partner. With the continued growth and expansion of our brands in China, this partnership will benefit all our brands. I believe that the combination of Asiaray's strong media knowledge and well established management team, with our resources in branding and access of our portfolio, it will certainly create a strong added value for both parties."
Mr. Lam concluded, "With our well-proven space management model and nationwide OOH, digital OOH ('DOOH') network as well as O&O media portfolio, we are committed in providing innovative and offline and online advertising solutions to embrace the demand from the digitalization trend. Building on our proven track record, we are well-poised to capture growth opportunities and transform into a yet stronger leader in the industry."
About Asiaray Media Group Limited (HKSE stock code: 1993)
Established in 1993 and listed on the Main Board of The Hong Kong Stock Exchange in 2015, Asiaray is a leading out-of-home media company in Greater China with a strategic focus on airport and metro line advertising. It is currently ranked first among privately-owned media companies in terms of number of airports and second in terms of number of metro lines with exclusive concession rights to mainstream media resources and revenue in Greater China. Through its constant efforts in expanding media resources with strategic value, the Group has secured exclusive concession rights of mainstream media resources at 27 airports* and 12 metro lines as at 30 September 2016. Currently, the annual aggregate passenger throughput of all airports covered by the Group reached 225.6 million as of end of 2015, approximately one-fourth of all the airports across Mainland China. In August 2016, Asiaray was also appointed as the exclusive advertising agency of FIA Formula E at the Central Harbourfront, Hong Kong. With an extensive nationwide network of media resources covering 37 cities in Greater China, the Group leverages its well-developed space management model to deliver integrated, creative out-of-home media solutions to renowned and diverse advertising customers. For more details about Asiaray, please visit its official website: www.asiaray.com.
* In addition, the Group has also obtained the concession rights for the advertising space at Sanya Phoenix International Airport Terminal 2, Hainan Island, since May 2016.
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