For immediate release
MediaCorp invests strategic stake in China's Dahe Media Co Ltd
Singapore, 14 February 2008 - MediaCorp Pte Ltd, Singapore's most integrated media company with an eye on overseas expansion, is taking a strategic 22.66 per cent stake in leading Chinese outdoor advertising firm Dahe Media Co Ltd.
The investment in Nanjing-based Dahe Media Co Ltd comprises both vendor shares and a block of new shares, the latter priced at HK$89 million. It makes MediaCorp the largest single shareholder of Dahe Media after Jiangsu Dahe International Advertising Group Co Ltd. The rest of Dahe Media's shareholders are mostly those owning its 'H' shares on the Hongkong Stock Exchange.
The first advertising company from China to be listed in Hongkong, Dahe Media has one of China's largest advertising and sales networks with widespread geographical coverage. It has about 170,000 square metres of billboard space, counting among its major clients big brands like Nike, Audi, China Mobile, Shell, HSBC and Coca-Cola.
In Nanjing for the signing of the deal, Singapore and Chinese parties expressed optimism that the collaboration will benefit all.
Mr Lucas Chow, MediaCorp Chief Executive Officer, said, "So far, MediaCorp's involvement in China has largely been in TV and radio co- productions as well as the distribution of Channel NewsAsia. This investment in Dahe Media marks our first equity stake in a Chinese media company, and we are very excited by its prospects in the rapidly growing Chinese advertising market. This is a strategic investment which will allow MediaCorp to be involved at the board and executive levels. But that's not all. This alliance also allows MediaCorp's existing clients a gateway into China with Dahe's integrated creative and production solutions."
Mr He Chaobing, Chief Executive Officer of Dahe Media, added, "I look forward to working with MediaCorp to tap its management expertise, and to bring corporate governance and sales processes to international standards. Moreover, MediaCorp can provide us with a springboard to expand beyond China."
The partnership will also focus on expanding Dahe's "China Express Advertising Board", a new advertising platform. The fastest growing segment the past year, it is based on multimedia billboards that can be updated via wireless technology and have the ability to transmit audio and instant text messages to audiences.
MediaCorp's purchase is subject to regulatory and shareholder approval, expected over the next few months.
Issued by Corporate Communications, MediaCorp
For more information, please contact:
Vice President, Corporate Communications & Marketing
Tel: (65) 6357 5766
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MediaCorp is Singapores leading media company with the most complete range of platforms, spanning television, radio, newspapers, magazines, movies and digital media.
It pioneered the development of Singapore's broadcasting industry, hitting the radio airwaves in 1936 and beaming the first TV pictures in 1963. Today, MediaCorp has over 55 products in four languages (English, Mandarin, Malay and Tamil), that reaches all adults in Singapore each week.
Among them are industry firsts such as the first in the world to use Digital Video Broadcast technology for outdoor digital television, and Asia's first Digital Audio Broadcast radio service. Initiatives in the digital space include a highly successful online classifieds, Internet TV-on-demand and High Definition TV broadcast.
Beyond Singapore, the diversified group is making its presence felt, through tv co-productions, magazines publishing, Singapore-made entertainment programmes, as well as Channel NewsAsia International, the only Asian owned English news channel.
It has also entered into a financial and strategic relationship with Indonesia's most integrated media company PT Media Nusantara Citra and its parent, Global Mediacom.
Winner of numerous international awards and accolades including Asia Television's Broadcaster of the Year, MediaCorp's vision is to become Asia's top media company, delivering valued content to the world.
For more information, please visit www.mediacorp.com.sg