Focus Media inks China's largest leveraged buyout

Focus Media (FMCN.NASDAQ, 8112.HKG, F10.FRA) agreed to be acquired by a group of investors led by US asset manager Carlyle Group (CG.NASDAQ, C67.FRA) for US$3.7 billion, in what is China’s biggest leveraged buyout to date, Bloomberg reported. The board of the Shanghai-based advertising firm approved an offer of US$27.50 per American depositary share, according to a Focus Media statement. The final price was US$0.50 above the preliminary offer made in August. The Chinese company’s shares closed at a roughly 9-month high of US$25.52, a one-day rise of 6.7%. The deal is subject to a minimum two-third shareholder approval and is forecast to close before the end of the first half of 2013, the statement said. The transaction comes after short-seller Muddy Waters accused Focus Media of exaggerating its ad network. It is one of many Chinese firms planning to de-list from US exchanges after reports of poor Chinese corporate governance hurt share valuations.