[Mumbai] Tom.com has signed a supplemental agreement with Kunming Fench Star Information Industry Co Ltd, a PRC outdoor media and advertising organization for a stock swap to purchase 49 percent of the outstanding shares of the company valued at HK$262.83 million.
After the acquisition Fench Star will be a wholly owned subsidiary of Tom.com. Tom.com will issue 47.7 million shares to Fench Star to cover the costs of the equity swap.
Late last year tom.com acquired the maximum stake ,49 percent, of equity foreign companies were allowed to own of PRC media companies. But under the framework agreement, the company had planned acquire more equity interest upon the government’s approval.
Tom.com has made a series of cross media acquisitions recently including purchasing a 50 percent stake for HK$60 million cash in the Ming Pao Group’s Yazhou Zhoukan, one of Hong Kong’s most popular weekly current events magazines.