China-based digital media and advertising company Focus Media, backed by conglomerate Fosun International, is planning a reverse merger with rubber producer and distributor Jiangsu Hongda New Material to go public, China Money Network reported earlier today.
Focus Media could raise as much as RMB9.2bn ($1.5bn), being valued at RMB50bn in the transaction.
The company’s notable shareholders include conglomerate Fosun (which holds 17.4%), FountainVest Partners (19.7%) and Citic Capital China Partners (9.6%). Asset management company Carlyle Group, as well as China Everbright Structured Investment, have also backed the company although their stakes have not been disclosed.
Focus and Jiangsu expect the transaction to be completed during the summer 2015.