Focus Media: Acquisition of New Trend Media equity receives conditional antitrust approval

Focus Media announced that the company plans to acquire equity in Chengdu Xinchao Media Group Co., Ltd. through the issuance of shares and cash payment. It recently received the antitrust review decision from the State Administration for Market Regulation approving the concentration of undertakings with restrictive conditions. The additional obligations include continuing to perform existing customer contracts, maintaining service levels, ensuring that the annual actual transaction price does not exceed the corresponding city price for the 24 months prior to effectiveness, providing services fairly and without discrimination, waiving the right to exclusive terms at locations, and not stipulating exclusivity or automatic renewal clauses in newly signed or renewed contracts, as well as improving the antitrust compliance system. After the 5-year period of restrictive conditions expires, an application may be made for their removal. This transaction still requires approval from the Shenzhen Stock Exchange, registration consent from the China Securities Regulatory Commission, and other approvals, and there is uncertainty.