Focus Media Offers to Take It Private
The head of Focus Media Holding Ltd (Nasdaq: FMCN) and other investors are offering to take the Shanghai-based advertising company private in a $3.66 billion deal, the Wall Street Journal reported. Focus Media would be the latest Chinese company to back away from a US stock listing. Late in 2007 its shares peaked at $65, but the price entered a slow decline after investors started questioning the effectiveness of its business model. A group including its chairman and chief executive are now offering $27 a share, representing a 15% premium against Focus Media's Friday close of $23.38.
VanceInfo, HiSoft Propose to Merge
VanceInfo Technologies Inc (NYSE: VIT), a Chinese software developer, and small domestic rival HiSoft Technology International Ltd (NASDAQ: HSFT) decided to merge and make what they said would be the biggest offshore IT services supplier in China. Shareholders of VanceInfo and HiSoft would each hold 50% of the new firm, valued at a total of $875 million in market capitalization. VanceInfo's revenue was $283 million and HiSoft's was $219 million last year.
Baidu Said to Develop Navigation System
Baidu Inc's (Nasdaq: BIDU) technology division is reportedly developing next-generation navigation technology. The "coordinated navigation system" as it is called is capable of evaluating traffic routes, according to a spokesperson for the project. The system, based on GPS remote sensing technology and 3G communications networks hooked up to Baidu's cloud services, is expected to help users find the best driving route given current road conditions.
Giant Interactive's Promotion to Cover Broadband Fees
Giant Interactive Group Inc (NYSE: GA), a Chinese online game developer and operator, said it will promote Allods Online, a new 3D MMORPG, by covering the cost of broadband for gamers. It is estimated that the company would pay ¥300 to ¥500 for some 50,000 gamers per year.
Suning to Offer ¥8b Bonds
Suning Appliance Co (SHE: 002024), China's largest chain store by revenue, said it plans to issue ¥8 billion worth of corporate bonds, marking its first attempt to raise money from the public since floatation. The company said the money will be used to improve its sourcing process and logistics system. Suning is desperately in the need for cash as its 1H net profits plunged 29.5% from a year ago.
Baotou Rare Earth Budgets ¥1b for Environment Cleanup
Inner Mongolia Baotou Steel Rare Earth Group Co (SHA: 600111), China's largest rare earth producer, plans to spend as much as ¥1 billion cleaning up the environment it has polluted, general manager Zhang Zhong told the National Business Daily. It will be China's largest ever environment protection project. The company promised last year to set aside a total of ¥2.2 billion addressing pollution in the years to come. That amount is expected to burden the rare earth giant, whose net profit was ¥3.48 last year.
CSR Seals Historic Turkey Train Deal
CSR Corp (SHA: 601766, HKG: 1766), China's biggest train maker by market value, signed a $391.2 million deal to supply subway trains to a Turkish infrastructure builder. It is the largest single deal a Chinese train maker has reached with a European buyer, and it is the first time China has exported subway trains to Europe. Under the terms, CSR will build a factory in Turkey to manufacture trains.
Ping An Premiums Near ¥144b Through Jul
Ping An Insurance Group Co of China (SHA: 601318, HKG: 2318), the nation's second biggest insurer, said its premium incomes added up to ¥143.79 billion in the first seven months of 2012, including ¥83.31 billion from life and casualty insurance and ¥56.58 billion from property insurance. No historic data were offered for comparison.
Evergrande Jul Sales Volume Dips from Jun
Evergrande Real Estate Group Ltd (HKG: 3333), a major low-end residential property developer, said it sold 1.33 million m2 in floor space valued at ¥8.24 billion in July, down 2.7% and up 0.2% respectively from the month before. Between January and July, it sold 7.1 million m2 fetching ¥43.28 billion, or ¥6,100/m2.
$1 = ¥6.34