Clear Channel Outdoor Holdings Inc. (CCO), one of the leading outdoor advertising companies, has reportedly inked an agreement with Ever Harmonic Global Limited, under which it would sell its 50.91% stake in China-based media company, Clear Media Ltd.
For the record, Ever Harmonic is fully owned by a group of investors including Mr. Han Zi Jing (CEO and an Exec. Director at Clear Media), Antfin Holding Ltd., China Wealth Growth Fund III L.P, and JCDecaux Innovate Ltd.
Sources cite that Ever Harmonic, following this deal, will take over Clear Channel's share in Clear Media for HK$7.12/share, or approx. USD 253 million in cash, as part of a planned voluntary conditional cash offer.
The deal highlights a premium of around 86.88% over the average of the closing prices of Clear Media stocks as listed on the Hong Kong Stock Exchange for the 30 successive trading days before the announced strategic review of CCO’s investment in China.
This deal is a successful milestone following the process formerly disclosed in 2019 to maximize the value of Ever Harmonic’s stake in Clear Media.
Reportedly, Clear Channel is planning to use the expected net proceeds of around USD 220 million from this deal to improve its liquidity position and enhance financial flexibility. It believes the estimated net proceeds from the Clear Media sale along with the cash on hand and the initiatives it is actively pursuing will improve CCO’s liquidity position and provide it with additional financial flexibility during the economic slowdown.
About Clear Channel Outdoor Holdings (CCO), Inc.
COO is one of the leading outdoor advertising firms in the world with a diverse portfolio of around 460,000 print and digital displays in economies across Europe, Asia, Latin America and North America, serving millions of customers monthly.
Source Credit -https://www.nasdaq.com/articles/clear-channel-to-sell-stake-in-clear-media-for-%24253-mln-withdraws-2020-outlook-2020-03-30