Private equity firm Advantage Partners has entered into a cooperation agreement with Qin Jia Yuan after agreeing to invest not less than HKD170 million in the media services company.
Advantage Partners has agreed to subscribe for five per cent of the issued share capital of QJY at the issue price of HKD1.3278 per share, representing a premium of approximately 6% over the average closing price of ten trading days and a premium of approximately 15% over the closing price on the last trading day before the signing of the Agreement.
QJY is to issue unlisted convertible bonds to Advantage Partners in the principal amount up to HKD120.9 million convertible into shares at an initial subscription price of HKD1.3278 per share; and warrants carrying subscription rights to subscribe for approximately 11.4 million shares at an initial subscription price of HKD1.3278 per share.
As a strategic investment in QJY, Advantage Partners’ holdings of the placing shares, convertible bonds and warrants in QJY are subject to a lock-up period of 25 months, which will commence from the completion date (estimated to July 2010) of the agreement.
The funding provided by AP will primarily be applied by QJY for the rights acquisition and new media platform development related to the development and operations of its multi-media advertising platform and multi-media business with television as the core.
"I have much confidence that the strategic investment by AP will create a win-win situation," says Dr Anita Leung Fung Yee, CEO of QJY. “Subsequent to AP becoming a substantial shareholder in QJY, we will not only acquire long-term capital support but also, through AP’s long-term investment strategy, assist QJY with international media cooperation, in establishing the first foreign-invested multi-media service platform with television as our core business within the PRC as allowed by State policies and encouragement.”
Advantage Partners is a pioneer in the private equity industry in Japan. Founded in 1992, it began providing services to private equity funds in 1997 and today, services several funds aggregating in excess of USD3.4 billion. Advantage Partners places great importance on supporting its portfolio companies with operational improvements and strategic planning.
"Our investment in QJY is consistent with AP’s long term investment strategy," says Emmett Thomas, a Partner in Advantage Partners’ Hong Kong office. "We have strong conviction in QJY’s competitive positioning in China’s media and advertising sector, QJY’s board, management, business history, platform coverage, unique business model and vision for the future, AP believes that QJY is the most ideal strategic partner among all companies engaged in media related business in the PRC. AP is excited to make QJY our first direct investment in the PRC."
