MediaCorp has taken its first "strategic stake" in one of China's leading outdoor advertising firms, Dahe Media — fuelling the company's expansion into the world's fastest-growing economy.
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The investment will see MediaCorp take a 22.6 per cent stake in the Hong Kong-listed company, making it the largest single shareholder after Dahe's parent, Jiangsu Dahe International Advertising Group.
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The purchase is subject to regulatory and shareholder approval, expected over the next few months, said MediaCorp, a wholly-owned subsidiary of Temasek Holdings. The stake comprises vendor shares as well as a block of new shares priced at HK$89 million ($16 million).
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"This investment in Dahe Media marks our first equity stake in a Chinese media company, and we are very excited by its prospects in the rapidly growing Chinese advertising market," said Mr Lucas Chow (right), chief executive officer of MediaCorp.
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"This is a strategic investment will allow MediaCorp to be involved at the board and executive levels. But that's not all. This alliance also provides MediaCorp's existing clients a gateway into China with Dahe's integrated creative and production solutions," he added.
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The Singapore media giant's involvement in China up till now has largely been in the distribution of Channel NewsAsia, its English news vehicle, as well as television and radio co-productions.
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The tie-up also gives Dahe a springboard to the international market as MediaCorp has been appointed the company's marketing and sales agent for outdoor advertising space within and outside China, said Dahe chairman He Chaobing (left).
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"MediaCorp can support the company's vision to expanding into overseas markets and is capable of providing technical advice and support," said Mr He.
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Dahe — whose clients include international brands such as Nike, Shell and Coca-Cola — has some of the largest advertising and sales networks in China, charting some 170,000 square metres of billboard space.
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Both parties will also collaborate on expanding a new advertising platform in the form of multimedia billboards which can transmit audio and instant text messages to audiences and be updated via wireless technology.
