SHANGHA GM INVESTMENT MANAGEMENT COMPANY ANNOUNCED ITS PARTICIPATION IN THE ACQUISITION OF FORBES MEDIA
New York, Jan 20th, 2014 -- Shanghai GM Investment Management Co., Ltd. ("Shanghai GM Investment" thereafter) has announced its participation in the acquisition of U.S. media giant, the Forbes Media. This can be a second major overseas media acquisition since a successful U.S. $ 2.6 billion AMC Entertainment acquisition deal by the Dalian Wanda Group. To ensure the completion of this transaction, Shanghai GM Investment Management has set up a series of strategic layout plans, including the initiating of the strategic alliance with Chinese domestic foreign banks to work on the relevant governmental regulatory requirements. To further ensure the subsequent acquisitions procedures to run smoothly, Shanghai GM Investment invite Eric Huang, PHD., the well-known venture capitalist from Silicon Valley (U.S.A.), to join its newly established US GM Capital and serve as the CEO and managing director.
日前国鸣投资管理有限公司已经與多家美国知名的投资银行聯繫并将进行委任，以便与卖方的代表德意志银行进行进一步磋商。投行的选择将于近日内完成。目前国鸣投资集团已积极地估算收购定价.价格将基于之前亚马逊(AMAZON)收购知名报业华盛顿邮报(WASHINGTON POST)及彭博（BLOOMBERG）收购商业周刊（BUSINESSWEEK）做精准的同业比较。收购金额包括之前福布斯集团向ELEVATION PARTNERS私募基金公司借款的2.64亿美元及后续运营资金。经过2个月调研和讨论, 国鸣投资管理有限公司董事会一致同意以3.8亿美元现金收购福布斯100%股权.
Shanghai GM Investment Management Limited has been also initiating contact with several well-known U.S. investment banks. It will then appoint one of them to work with the Deutsche Bank, the Forbes representative. The process of selecting the US investment bank will be completed in a few days. In addition, GM Investment has been actively working on the offering price. The offering price of acquisition will be very comparable to the acquisition cost between other similar businesses in the media industry, such as the previous deals of the well-known medias, the deal of Washington Post to Amazon, and the deal of Businessweek to Bloomberg. Shanghai GM Investment announced that the total offering price will include a $264 million payable loan from ELEVATION PARTNERS to Forbes and the subsequent working capital. After two months of research and discussions, the board of Shanghai GM Investment Management Limited has unanimously agreed to a $380 million offering price in cash to acquire 100% of Forbes' equity.
Shanghai GM Investment has been widely published by China's major finance &business magazines by its excellent company's performance and investment portfolios. According to Mr. Qi Yi, the CEO of Shanghai GM Investment, 100% of the funding of this acquisition will come from GM Investment's own fund. "Also," stated Mr. Qi, "GM Investment guarantees that this acquisition will be the long-term commitment to Forbes and its employees." However, taking consideration of the lengthy progress to receive the approval of the Ministry of Commerce in China, GM investment will incorporate a special purpose company (SPV) to carry out the bank's syndicated loans and financing in order to ensure the successful completion of the acquisition transaction.
The Asia Society estimates that by 2020, China's overseas investment will reach to one trillion U.S. dollars. Chinese enterprises are in the transitions, taking away the roles of traditional lower-ended manufacturing but looking for higher profits, investments, and business alliances. Chinese enterprises value the international acquisitions based on the acquired companies' brand strength, marketing resources, and research capabilities. Shanghai GM Investment Group projects that this acquisition will assist Forbes to strengthen its current brand name and reputation and will bring more business to China's media market. By the same token, this acquisition will also be the first milestone for GM Investment to step into for the global media acquisition business. In fact, GM Investment believes that Forbes can enter into a new business growth cycle through business alliances with Chinese companies, especially with GM Investment, which has a huge middle-class customer basis along with its strong growing media business. Through this business alliance and acquisition with GM Investment, Forbes can expand its business into China's market, and can expect to receive one billion more subscribers, therefore receiving higher income return worldwide. This acquisition will be a win-win situation.
Mr. Qin Yi, the president of GM Investment, declared that GM Investment has diversified investment portfolio and years of experiences working with the Chinese government. This made GM Investment the best candidate and more capable to work with Chinese government officials to receive the government approval in the acquisition process and better communications with the relevant governmental agency. Mr. Qin Yi further indicated that GM investment has been well prepared to complete this acquisition, and to make the whole process work successfully based on the past experiences.
In the past years, GM Investment has made several successful investments in ST securities by restructuring corporations. These well-known investments include, but are not limited to, LETV and Sunning Enterprise. In the long-term plan after the acquisition, as stated by Eric Huang, PHD., GM Investment will focus on Forbes' global layout along with its existing business segments, resources, and marketing channels. Dr. Huang further stated that through this acquisition GM Investment can assist Forbes to apply its current priority web business onto different sectors. For example, through this strategic business alliance, Forbes can strengthen its brand name and expand its business further onto other business sector arenas, including the real estate market, business education, the development for emerging media companies, intelligent machines investment, online medical care system development, network security, and the start-ups in both China and U.S. media companies.
除此之外，福布斯集团旗下的福布斯数位(FORBES DIGITAL)已经是美国第九大财经新闻网站。根据福布斯总裁Mike Perlis表示，今年底前数位营收部份尚可成长达25%。这次的友好收购将使国鸣可以在福布斯数位的平台之上，加上乐视网转型的经验，在开放数据讯息服务平台、云数据、及移动互联网等方面更紧密的运用。
Currently, Forbes Digital is the ninth largest U.S. financial website in the digital media sector, with the projected revenue growth rate up 25% by the end of this year. GM Investment believes that through this acquisition, with its solid experiences in the transformation of LETV and through the alliance with Forbes' digital media platform, GM Investment can expand its business operations further and diversify its investments in the sectors including digital informatics services platform, cloud computing, and mobile internet.