AirMedia Group Inc (NASDAQ: AMCN) got some lift early Wednesday, on word the Beijing-based operator of out-of-home advertising platforms in China targeting mid-to-high-end consumers as well as a first-mover in the travel Wi-Fi market, entered into Amendment No. 3 transaction for going private.
Under the terms of the Merger Agreement, either the Company or its parent could terminate the pact if the merger contemplated by the Merger Agreement has not been completed by Friday. The Merger Agreement Amendment No. 3 extends the Termination Date to July 31, so as to give the Special Committee sufficient time to consider the Revised Proposal.
A special committee of the Board received a proposed amendment to the merger agreement from several directors on May 23 to: acquire all of the outstanding shares of the company not already owned by the Buyer Group for $4.00 per American Depositary Share or $2.00 per ordinary share in cash; and extend the termination date to December 31, 2017. The company said the Special Committee is evaluating the revised proposal with the assistance of its financial and legal advisors.
AirMedia sells advertisements on the routes operated by several Chinese airlines and at Sinopec's service stations in China. AirMedia also has concession rights to operate the Wi-Fi systems on trains administered by eight railway administrative bureaus in China as well as on many long-haul buses in China.
New York-based shares of the Chinese conglomerate mounted a charge mid-morning Wednesday, growing 21 cents or 9.2%, to $2.51.