China's Focus Media Holding Ltd, a Carlyle-backed company that was delisted in the United States after short-seller attacks, aims to relist on the market through an acquisition by communications equipment maker Hedy Holdings.
Hedy plans to acquire Focus Media, which operates outdoor advertising as well as an internet ad agency, through a mix of cash, new shares and an asset swap for 45.7 billion yuan ($7.17 billion), Guangzhou-based Hedy said in a filing on the Shenzhen stock exchange.
"The deal involves a backdoor listing, so the company will need to submit an application to get approval from the China Securities Regulatory Commission," Hedy said in the Chinese-language statement.
The company also plans to raise up to 5 billion yuan in private placement of shares to fund the acquisition, it said.
Focus Media's relisting plans hit a snag in June after a similar deal with Jiangsu Hongda New Material Co Ltd came unstuck after the resignation of Hongda's chairman as he and the firm were being investigated over the possible violation of securities laws.
Focus Media's relisting plans have been seen as setting a precedent for Chinese firms which are listed abroad but are keen to come back home.