SinoMedia Acquires Remaining Stakes in Golden Bridge Senmeng

Deal gives SinoMedia promising development potential for the advertising business operation in respect of CCTV-7 

HONG KONG, Nov. 17, 2010 /PRNewswire-Asia/ -- SinoMedia Holding Limited ("SinoMedia" or the "Group"; stock code: 623), a leading privately-owned media advertising operator in China providing nationwide TV advertising coverage for clients on China Central Television ("CCTV") and other media advertising resources, today announced that the Group has entered into agreements for the acquisition of the remaining 40% interest in Golden Bridge Senmeng Media Advertising Co., Ltd. ("Golden Bridge Senmeng"), one of the largest underwriters of TV advertisement time for agricultural programs on CCTV-7, from the minority shareholder of Golden Bridge Senmeng.

The consideration of the acquisition comprises both cash consideration and the grant of share options to the beneficial owner of the minority shareholder of Golden Bridge Senmeng, taking into account: i) the audited net assets value of Golden Bridge Senmeng for 2009; ii) the audited net profit of Golden Bridge Senmeng for 2010 to 2013; and iii) the price-earning multiple of 6 times. The acquisition of the first 30% interest in Golden Bridge Senmeng is expected to be completed by early 2011, while the acquisition of the last 10% interest will take place in 2014. Upon completion of the acquisitions, Golden Bridge Senmeng will become a wholly-owned subsidiary of the Group.

Through Beijing Golden Bridge Senmeng, SinoMedia holds the exclusive underwriting rights to all the advertising resources of seven programs on CCTV-7, including "Zhi Fu Jing," "Daily Agricultural News" and "Focus on the Three Agricultural Issues ". The investment in Beijing Senmeng Media will not only bring to the Group promising development potential for the advertising business operation in respect of CCTV-7, but also help the Group provide a wider range of high quality advertising choices to clients. 

Mr. Chen Xin, Chairman of SinoMedia said, "This is our second acquisition this month, on the heels of last week's acquisition of the remaining stake in a nationwide public service advertising broadcast network. Both businesses will be important focuses of the future development of our service portfolio, as the newly acquired companies are already making profit contribution to the Group and both are sustaining that growth momentum. We are confident of the future prospect of the two businesses, and we believe that they will grow to become one of our growth drivers going forward, helping SinoMedia to solidify its position as a leading advertising operator in China."