NEW YORK, Jan 25 (Reuters) - China-based Focus Media FMCN.O shares could be worth nearly twice current valuations as investors overlook some of its valuable assets, financial newspaper Barron’s said on Sunday.
The paper said Focus, which sold core assets to Chinese Internet portal Sina Corp (SINA.O) last month, still retains an Internet advertising unit, a movie theater advertising network, billboards and around $381 million in cash, which it said was not reflected in its current share valuation.
Under the all-stock Sina deal, Focus shareholders will own less than half of the combined company at around $1 billion, exceeding Focus’s $916 million market cap, according to Barron‘s.
Focus shares, which trade around $7, could be worth $13 according to an analyst quoted by Barron‘s. (Reporting by Yinka Adegoke, editing by Maureen Bavdek)