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CDH Investments quits Focus Media buyout: media
December 7, 2012 / 3:55 PM / in 5 years

CDH Investments quits Focus Media buyout: media

(Reuters) - Chinese private equity firm CDH Investments has dropped out of a consortium that was looking to buy display-advertising firm Focus Media Holding Ltd FMCN.O, Dow Jones Newswires reported, citing a person with knowledge of the deal.

Focus Media shares dropped 9 percent in early trade on the Nasdaq after the report, before recovering to $23.04, down 6.9 percent.

Carlyle Group (CG.O), along with Chinese PE players FountainVest Partners, CITIC Capital Partners, CDH and China Everbright, proposed a $3.5 billion buyout offer for the Chinese advertising firm in August.

CDH, which was to invest about $200 million in the deal, dropped out citing an insufficient return on its investment, Dow Jones reported.

Focus Media management formed a committee of independent directors to evaluate the proposal and said last month the committee still had not reached a decision.

CDH wasn’t immediately available for a comment. A spokesperson for Carlyle declined to comment on the story.

Reporting by Himank Sharma in Bangalore; Editing by Rodney Joyce

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