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:
In China:
Ms.
Shuning Yi
Investor Relations Department
VisionChina Media Inc.
Tel: +86 134-2090-9426
E-mail: shuning.yi@visionchina.cn
In the United
States:
The Piacente Group, Inc.
Mr. Don Markley
Tel: +1 212-481-2050
E-mail: visionchina@tpg-ir.com
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SOURCE VisionChina Media Inc.
