AirMedia Group (NASDAQ:AMCN) announced it has approved an investment agreement between various entities affiliated with the company, including Beijing GreatView Media Advertising Co. Ltd., which is the main operating entity of AirMedia's gas station media network, the entity's current shareholders, and Elec-Tech in accordance with the investment agreement.
Elec-Tech (Retop) will invest RMB640 million ($104 million U.S.) to purchase ordinary shares representing around 21.27% of GreatView Media's equity interest. Following completion of the transaction, AirMedia will indirectly control 61.41% of the equity interest of GreatView Media.
In order to further develop its existing gas station media network, AirMedia plans to install LED screens in its gas stations throughout China. The company's current shareholders elected to use the full amount of Elec-Tech's investment to purchase LED screens from Retop, a fully subsidiary of Elec-Tech.
"We are excited about our partnership with Elec-Tech(Retop), which enables us to explore the great potential and brilliant prospects of LED screen advertising in our gas station media network," said AirMedia Chairman and CEO Herman Guo. "We believe putting LED screens in our gas station media network is the right step to not only turn around this product line but also to maximize the tremendous value of this network. We expect the introduction of our new partner, Elec-Tech, to bring not only affirmation of the value that we believe the new LED format will add to our gas station media network, but also additional technical expertise in electronic display."
"We believe AirMedia's gas station media network is a very unique nationwide network to reach car drivers and car owners, one of the most affluent groups in China," added Elec-Tech Chairman Donglei Wang.