FOCUS MEDIA Network Ltd (HK: 8112), which just last month began trading in Hong Kong, said that one of the funds managed by Asia based Gen2 Partners bought an additional 10 mln ordinary shares from the open market on July 29 to boost its stake to 9.65% and become Focus' third largest shareholder.
Hong Kong-listed Focus, the largest digital Out-of-Home media company in Hong Kong and Singapore by the number of venues in which it deploys its digital flat panel displays, said the fund acquired the ordinary shares from the open market.
Mr P J Wong, co-founder, Chairman, CEO and Executive Director of Focus Media Network, said: "We are very encouraged to receive this endorsement from Gen2 Partners, a leading institutional investor in the Asian investment community with firm-wide AUM and assets under advisory of approximately one bln usd.
"This has given our management team greater confidence in pursuing even more ambitious growth strategies. With the support from Barry and his team, we will now be able to go far-reaching places that we alone would otherwise not be able to."
Mr Barry Lau, Managing Partner & Chief Investment Officer of Gen2 Partners, commented: "We are extremely enthused by the prospects of Focus Media Network's developments under the stewardship of chairman and CEO of the company, PJ Wong.
"We had wanted more allocation at the placement. However, as the company's placement was extremely popular resulting in its oversubscription by investors, we decided to acquire an additional 10 million shares from the open market post-listing."
Mr. Lau added that he has "high expectations" for both Focus Media Network and the management team and sees considerable room for the company to further enhance its market penetration with steady growth and market development.
"Its potential and profitability prospects remain impressive. Focus Media Network was listed on Hong Kong's GEM board on July 28, with shares priced at the top end of the indicative price range, or 20 times the company's FY2010 price/earnings multiple."
Focus Media Network Ltd (HK: 8112) is a well-established digital Out-of-Home media company in Hong Kong and Singapore, with an operating history since April 2004. The Group pioneered the concept of creating a sizeable network of flat-panel displays in elevator lobbies of office and commercial buildings to sell advertisements. In terms of the number of venues, Focus Media Network is the largest digital OOH media company that has created a sizeable network in elevator lobbies of office and commercial buildings in Hong Kong and Singapore.
Incorporated in 2008, Gen2 Partners Ltd is an Asian based independent alternative asset management firm. Gen2 is one of the leading investment management and advisory companies in Asia with current firm-wide AUM and assets under advisory of approximately one bln usd. Its diversified business comprises hedge funds and private equity.
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