Shanghai New Culture Media Group Co., Ltd. (SZSE:300336) agreed to acquire Shenyang Dakesi Advertising Co., Ltd from Han Huili and Zhou Xiaoping for approximately CNY 300 million in cash and stock on June 4, 2014. In a related transaction, Shanghai New Culture Media Group Co., Ltd. (SZSE:300336) agreed to acquire Tulip Advertising & Media (Shanghai) Corporation for CNY 1.2 billion. For both the acquisitions, Shanghai New Culture Media Group Co Ltd will issue 33.65 million shares at an issue price of CNY 25.86 and will pay CNY 629.85 million in cash in total.

Shanghai New Culture Media Group will raise supporting fund of not more than CNY 500 million through non-public issuance of shares to not more than five specific investors. Shenyang Dakesi reported revenues of CNY 39.57 million, total assets of CNY 51.32 million, EBIT of CNY 23.91 million, net income of CNY 23.17 million and net assets of CNY 34.76 million for the year ended December 31, 2013. The transaction has been approved by the Board of Shanghai New on June 3, 2014.

As of June 19, 2014, the transaction is approved by the shareholders of Shanghai New Culture Media Group. The transaction is subject to approval by CSRC. Zhonghua Certified Public Accountants acted as an accountant, Haitong Securities Co., Ltd. acted as financial advisor and Llinks Law Office acted as legal advisor to Shanghai New Culture Media Group Co., Ltd.