BEIJING, Sept. 14, 2016 /PRNewswire/ -- VisionChina Media Inc. ("VisionChina Media" or the "Company") (Nasdaq: VISN), China's largest out-of-home digital television and advertising network on mass transportation systems and the leading provider of urban mass transit Wi-Fi, today announced that its consolidated variable interest entity, VisionChina Media Group Co., Ltd. ("VisionChina Media Group" or the "Seller") has completed the sale of its 49% equity interests in VisionChina New Culture Media Co., Ltd. ("New Culture"), the operating entity of the Company's subway mobile TV advertising business, to Ledman Optoelectronic Co., Ltd. ("Ledman"). The terms of the transaction were previously announced on August 22, 2016. Ledman is a professional manufacturer in the Chinese LED industry and a leading Sports Resources Operator, listed on the Shenzhen Stock Exchange (300162.SZ). Both VisionChina Media and Ledman are official partners with the Chinese Football Super League.
Mr. Limin Li, VisionChina Media's Chairman and Chief Executive Officer commented, "The sale of our subway mobile TV advertising business is a critical and strategic step for VisionChina Media, and we remain open in the future to sell the remaining 51% of our equity position in New Culture. We believe the transaction will provide significant flexibility to satisfy our working capital needs and allow us to focus our resources on the fast growing Wi-Fi business, and to further strengthen our leading position in China's urban mass transit Wi-Fi. We are very excited about the future of our Company."
With the closing of the transaction, the Company has received the transaction proceeds of RMB61.0 million in cash and RMB321.2 million in the form of 17,085,100 shares of Ledman ("Ledman Shares"), valued at RMB18.8 per share, and VisionChina Media, through the Seller, indirectly owns approximately 4.88% of Ledman. The Ledman Shares are subject to a lock-up period until May 31, 2019 and VisionChina Media Group may not sell or otherwise dispose of more than 75% of the Ledman Shares during the 12 months following the lock-up period expiry.
About VisionChina Media Inc.
VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home advertising network on mass transportation systems, including buses and subways. As of September 30, 2015, VisionChina Media's advertising network included approximately 97,757 digital television displays on mass transportation systems in 18 of China's economically prosperous cities, including Beijing, Guangzhou and Shenzhen, as secured by exclusive agency agreements or joint venture contract. VisionChina Media has the ability to deliver real-time, location-specific broadcasting, including news, stock quotes, weather and traffic reports, and other entertainment programming.
In addition, VisionChina Media, through its consolidated affiliate Qianhai Mobile, has secured exclusive concession rights for bus Wi-Fi services in 30 cities across China, including Shanghai, Shenzhen, Guangzhou and Tianjin, covering approximately 80,000 buses. Currently, Qianhai Mobile provides free Wi-Fi Internet services on over 30,000 buses under the brand name "VIFI," with approximately 10 million registered users.
For more information, please visit http://www.visionchina.cn.
About Ledman Optoelectronic Co., Ltd.
Ledman Optoelectronic Co., Ltd., a professional, leading manufacturer in the Chinese LED industry and listed on the Shenzhen Stock Exchange (300162.SZ), is committed to developing, manufacturing and marketing high-quality, high-brightness LED components, energy efficient LED lighting products, and indoor and outdoor LED displays. Ledman's core business covers LED display, LED lighting, LED components, LED energy saving and LED media.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates" and similar statements. Among other things, the quotations from management in this press release contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1 and its annual report on Form 20-F. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
For investor and media inquiries, please contact:
Ms. Shuning Yi
Investor Relations Department
VisionChina Media Inc.
Tel: +86 134-2090-9426
In the United States:
The Piacente Group, Inc.
Mr. Don Markley
Tel: +1 212-481-2050
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SOURCE VisionChina Media Inc.