Listed construction concern China Rich Holdings has announced a $517.8 million bid for privately held Hong Kong-based telecommunications and Internet firm New Media, topping a rival offer. China Rich Holdings' bid came after listed country-club operator Essential Enterprises offered to acquire stock from New Media shareholders, which could provide a back-door listing opportunity for New Media. China Rich's offer is about $11 million higher than Essential's bid. China Rich said it had signed a non-binding memorandum with New Media, which expired last week, and was preparing a draft formal agreement with a number of key New Media shareholders, which own about 40 per cent of the firm. Shareholders include chairman Robert Cheney, William Au-yang, Victor Lee Shui-kwai and Ronald Cheng. Mr Cheng is the brother-in-law of China Rich chairman Robert Yip. China Rich said once a draft formal agreement was signed, a voluntary offer of $517.8 million or $232.5 per share would be made to New Media shareholders. Mr Yip said $190 million of the bid would be paid with cash and the remainder through the issue of new China Rich shares and convertible bonds. China Rich said New Media shareholders had yet to accept either its offer or that of Essential. More than 50 per cent of New Media shareholders were reported last week to have privately agreed to Essential's bid. Essential raised $370 million in a share placement on July 9 to finance the acquisition of New Media. However, Mr Yip denied Essential was in a better position than China Rich to buy New Media. China Rich said three New Media shareholders who had signed the memorandum had pre-emptive rights to buy stock from other shareholders before they could be sold to a third party. China Rich said the offer for New Media shares would not go ahead unless it could acquire more than 50 per cent of New Media stock. DEALS