Focus Media Holding, operator of the mainland's largest flat-panel television advertising network, and several shareholders plan to raise about US$500 million in a follow-on share placement, people familiar with the deal said.
The company plans to sell 1.5 million new American depositary shares and use the proceeds to fund possible acquisitions as well as for working capital.
Existing shareholders will sell 5.1557 million ADS, including one million shares from US buyout firm Carlyle Group and 1.9 million from Focus Media's co-chairman David Yu.
The sale will reduce Carlyle's stake to 2.2 per cent from 4.2 per cent and Mr Yu's holding will decline to 0.3 per cent from 3.9 per cent.
Total Team Investments is selling its entire stake of 2.26 million ADS, representing 4.2 per cent of the company.
Shares owned by the company's founder, chairman and chief executive Jason Jiang Nanchun can be used in a 15 per cent over-allotment option. Should that option be exercised, Mr Jiang's stake would be reduced to 10.6 per cent from 12.4 per cent.
'It's another clear-out sale with the majority of it secondary shares,' a person familiar with the transaction said. 'We're seeing this across the market as companies take advantage of good share prices.'
