After suspending trade for four months, Mason Technologies announced its reconstruction plan of acquiring two companies to expand its presence in the internet advertisement industry.

Shenzhen Mason Technologies announced on Nov. 2, 2015 that the company is to acquire 100% share of Ding Sheng Media from Jun Su and 100% share of Beijing Yi Wan Internet Company from Jin Tian Liao, Min Fang and Rui Feng Ma.

Shenzhen Mason Technologies is to release 5.97 million shares to Jun Su at RMB 23.59 (US $3.72) per share plus RMB 273.6 million of cash to acquire Ding Sheng Media’s 100% share.

The company’s transaction price is RMB 414.63 million. Meanwhile, Shenzhen Mason Technologies is to release 7.37 million share at the same price to Jin Tian Liao, Min Fang and Rui Feng Ma, along with RMB 150 million in cash to acquire Beijing Yi Wan Internet Company’s 100% share, which its transaction price reached RMB 324 million (US $51.16 million).

Shenzhen Mason Technologies also plans to issue 12.4 million shares  through a private placement to raise RMB 445 million. The capital will be utilized for cash payment, tax on transaction and third party administration fee.

The acquisition triggers huge reconstruction of asset, but the controlling stockholders of Shenzhen Mason Technologies remains the same as Zhi Jiang Li, Chairman of the board, Xiao Yan Luo, wife of Li and Chi Li daughter of Li.

Both stockholders of Ding Sheng Media and Yi Wang Internet made commitments to its sales. Jun Su, stockholder of Ding Sheng Media

Current shareholders of Ding Sheng Media and Yi Wang Internet both made promises to future sales. Jun Su of Ding Sheng Media held responsible to compensate revenue loss. Su promised that Ding Sheng Media’s net profit is to reach RMB 30 million, RMB 39 million, RMB 50 million and RMB 58 million consecutively throughout the period from 2015 to 2018. As for Yi Wang Internet, shareholders include Jin Tian Liao, Min Fang and Rui Feng Ma all held responsible to compensate revenue loss. The agreed sales of 2015, 2016 and 2017 should realize net profit at RMB 25 million, RMB 32.5 million and RMB 42.3 million.

According to Shenzhen Mason Technologies, the company aims at expanding market presence in LED lighting products related industry and that includes advertising industry. The company secured acquisition of Rishang LED, a leading signage lighting provider, in June 2015 and marked its extension strategy toward related industry. The acquisitions of Ding Sheng Media and Yi Wang Internet are also part of Shenzhen Mason Technologies’ crucial development. The acquisition will enhance sales capacity of the company and also allow the company to benefit from multiple industry operation.

The company also released an investment notice, stating that Maso technologies is to invest RMB 30 million in Botuu Advertisment to acquire 21.43% of the company’s share.

Similar to Ding Sheng Media, Botuu Advertisement is also a renowned internet sales solution provide that belongs to internet sales industry.

What is worth mentioning is that Shenzhen Mason Technologies signed the agreement of Valuation adjustment mechanism with Botuu Advertisement. According to the agreement, Mason technologies is to acquire Botuu Advertisement’s remaining share with stock and cash once Botuu Advertisement reaches agreed sales goal. By then, the overall value of Botuu Advertisement will reach 10 to 14 times of the agreed net profit with cash payment holds 25% to 35% of total acquisition payment.

If Botuu Advertisement fails to reach the agreed goal, Mason technologies is entitled to ask the former to buy back RMB 30 million (US $4.7 million) of its shares.

(Translator: Emma Chang, Editor, LEDinside)