GeoInvesting 'Confident' that AirMedia (AMCN) Deal Will Close

As AirMedia Group Inc. (Nasdaq: AMCN) shares slump Wednesday, GeoInvesting is confident that its $6/ADS "go private" deal will close.

The firm commented, The recent correction in the China A share market has caused a price drop for companies that have already received non-binding go-private offers, including AMCN, which is now trading at $4.00 per ADS, representing 50% potential premium if the go-private offer closes. This big premium could reflect investors’ concerns that the company might not be able to complete its go-private process.

However, according to Chinese news on July 7, 2015, AMCN has reportedly received the first installment of RMB 800 million from [Beijing] Longde Wenchuang Fund in its RMB 2.1 billion sale.

Coincidentally, on July 6, 2015, AMCN issued another press release to announce that it had retained Duff & Phelps Securities LLC and Kirkland & Ellis as its advisors. Both Duff & Phelps and Kirkland & Ellis have successfully completed several Chinese companies go private transactions.

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