MediaCorp buys into Dahe Media

Singapore - MediaCorp is taking a strategic 22.66% stake in leading Chinese outdoor advertising firm Dahe Media.

The investment in Nanjing-based Dahe Media comprises both vendor shares and a block of new shares, the latter priced at HK$89 million (S$16.16 million), making MediaCorp the largest single shareholder of Dahe Media after Jiangsu Dahe International Advertising Group.

The first advertising company from China to be listed in Hongkong, Dahe Media has one of China's largest advertising and sales networks with widespread geographical coverage. It has about 170,000 square metres of billboard space, counting among its major clients big brands like Nike, Audi, China Mobile, Shell, HSBC and Coca-Cola.

"So far, MediaCorp's involvement in China has largely been in TV and radio co-productions as well as the distribution of Channel NewsAsia. 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," Lucas Chow, CEO, MediaCorp, said.

"This is a strategic investment which will allow MediaCorp to be involved at the board and executive levels. But that's not all. This alliance also allows MediaCorp's existing clients a gateway into China with Dahe's integrated creative and production solutions."

The partnership will also focus on expanding Dahe's ‘China Express Advertising Board', a new advertising platform based on multimedia billboards that can be updated via wireless technology and have the ability to transmit audio and instant text messages to audiences.

He Chaobing, CEO of Dahe Media, said, "I look forward to working with MediaCorp to tap its management expertise, and to bring corporate governance and sales processes to international standards. Moreover, MediaCorp can provide us with a springboard to expand beyond China."