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Thursday, November 29, 2007

Indonesia`s MNC to buy at least 51 pct of China`s Linktone

Beijing (ANTARA News)- Chinese wireless media firm Linktone Ltd said Indonesia's PT Media Nusantara Citra (MNC) agreed to acquire at least 51 percent of the company.

The offer price of $3.80 per American depositary share represents a 53.8 percent premium over Linktone's closing price of $2.47 on Tuesday.

Linktone shares rose 34 percent at $3.30 following the news, which comes a day after it posted a wider-than-expected third-quarter loss.

The deal with MNC would increase its cash balances and enable the two companies to pursue wireless value-added services in China and other Asian countries, Linktone told Reuters.

Under the terms, MNC will buy 6.1 million ADS in a tender offer and further subscribe for up to $25.2 million ADS.

On Tuesday, Linktone posted a third-quarter net loss of $2.8 million, or 12 cents per ADS.

MNC will finance the transaction using cash reserves, and the deal is expected to close in the first quarter, Linktone added.

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