The red-hot stock market welcomed another big news yesterday – the returning to A-share market of Focus Media by reverse merging with Hongda New Material was formally announced. This deal is the joint achievement by Jingtian & Gongcheng with its hard-working partners like Huatai Securities and Southwest Securities. Focus Media, the super aircraft carrier of China’s digital media advertisement, after years of sailing on the overseas capital market, finally starts to sail back to China’s stock market.
 

There are heated discussions by the media, by investment banks, by PEs, and by our peers, because there are just too many eye-catching stuff in this proposal: extremely high valuation, innovative deal structure, revelry of the TMT industry, benchmark for red-chips returning to A-share market. It may even mark the beginning for leading red-chip companies to return home. Everything is just so exciting. The proposal is the joint wisdom of the leading capital market legal service team from Jingtian & Gongcheng and its partners: how to modify red-chip structure? How to unwind VIE arrangement? How to align and optimize foreign and domestic systems? How to position the relationship between investors old and new? How to protect the rights and obligations of buyer and seller of the shell company? This proposal embodies almost all relevant legal and structural problems for such deals, and behind all these are the meticulous wisdom and experiences of Jingtian & Gongcheng and its partners.
 

Currently, the project of Focus Media to return to A-share market is still under way, so it’s inconvenient for us to disclose further details. We definitely will share more information in the future, and thanks for your patience.