MediaCorp Takes Stake in Chinese Ad Company

SINGAPORE, February 14:
The Singaporean media company MediaCorp has acquired a 22.66-percent stake in
the Chinese outdoor advertising firm Dahe Media.

The investment in the
Nanjing-based firm comprises both vendor shares and a block of new shares
priced at HK$89 million ($11.4 million). It makes MediaCorp the largest single
shareholder of Dahe Media after Jiangsu Dahe International Advertising Group.
The remainder of the company is listed on the Hong Kong Stock Exchange.

Dahe Media has one of
China’s largest advertising and sales networks with 170,000 square meters of
billboard space. Its roster of clients includes Nike, Audi, China Mobile,
Shell, HSBC and Coca-Cola.

Announcing the deal, Lucas
Chow, MediaCorp’s CEO, said: “So far, MediaCorp’s involvement in China has
largely been in TV and radio co-productions as well as the distribution of
Channel NewsAsia. This investment in Dahe Media marks our first equity stake in
a Chinese media company, and we are very excited by its prospects in the
rapidly growing Chinese advertising market. This is a strategic investment,
which will allow MediaCorp to be involved at the board and executive levels.
But that’s not all. This alliance also allows MediaCorp’s existing clients a
gateway into China with Dahe’s integrated creative and production solutions.”

He Chaobing, the CEO of
Dahe Media, added, “I look forward to working with MediaCorp to tap its
management expertise, and to bring corporate governance and sales processes to
international standards. Moreover, MediaCorp can provide us with a springboard
to expand beyond China.”

—By Mansha Daswani