Clear Channel Outdoor Holdings, Inc. Tenders its Clear Media Limited Shares
Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) (the “Company”), today announced that Clear Channel KNR Neth Antilles N.C., an indirect wholly owned subsidiary of the Company, has tendered its shares representing the Company’s 50.91% stake in Clear Media Limited (“Clear Media”), an indirect, non-wholly owned subsidiary of the Company based in China, to Ever Harmonic Global Limited (“Ever Harmonic”) for approximately $253 million*. Following receipt of the tendered shares, Ever Harmonic declared its voluntary cash general offer unconditional in all respects on April 28, 2020.
The Company expects to receive the cash proceeds in May 2020. The Company intends to utilize the net proceeds of approximately $220 million to improve its liquidity position and increase financial flexibility, subject to any limitations set forth in its debt agreements.
As previously announced on March 30, 2020, Clear Channel Outdoor entered into an agreement with Ever Harmonic to sell its stake in Clear Media for HK$7.12 per share. This represents a premium of approximately 87% over the average of the closing prices of the Clear Media shares as quoted on the Hong Kong Stock Exchange for the 30 consecutive trading days prior to the announced strategic review of our investment in China on November 29, 2019.
Ever Harmonic is a special purpose vehicle wholly owned by a consortium of investors comprising Mr. Han Zi Jing (chief executive officer and an executive director of Clear Media), Antfin (Hong Kong) Holding Limited, JCDecaux Innovate Limited and China Wealth Growth Fund III L.P.
* Figures based on the foreign exchange rates of USD/HKD = 7.75482.
