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Bison Capital Holding Opens Position In AirMedia Group Inc (ADR) (AMCN)

Bison Capital Holding Co Ltd is bullish on AirMedia Group Inc (ADR) (NASDAQ:AMCN). In a recent filing with the Securities and Exchange Commission, the fund has disclosed the ownership of 16.2 million shares, which represent 13.5% of the company’s common stock. Bison Capital entered a share transfer agreement with Global Gateway Investments, Ltd and has acquired 8,100,000 American Depositary Shares, or 16,200,000 shares, for a price of $14.58 million.

AirMedia Group (ADR) (AMCN)

Under the terms of the transfer contract, Bison Capital has agreed to purchase shares with the condition that Mr. Qunyao Gao and Mr. Peixin Xu be appointed directors of the company. The fund, however, does not intend to pursue any further actions that would interfere with the management of AirMedia Group Inc (ADR) (NASDAQ:AMCN).

According to our database, AirMedia Group stock is rather popular among top hedge fund managers. Driehaus Capital, run by Richard Driehaus, holds 1.86 million shares, up by 7% during the third quarter of 2013. Driehaus Capital’s stake is reportedly worth $3.2 million. Charles Clough has also been buying this stock, increasing his fund’s position by 6% during Q3. Clough Capital Partners reported in its latest 13F report the ownership of 1.25 million shares valued at a little under $2.2 million. Renaissance Technologies and Jim Simons have also been interested in this stock, increasing their stake by 6%. Renaissance currently holds 406,300 shares valued at $715,000.

AirMedia Group Inc (ADR) (NASDAQ:AMCN) offers advertising services in the People’s Republic of China. The company has a market cap of $100 million and does not pay a dividend. The stock has a beta of 0.98. For three months ended Semptember 30, 2013, AirMedia Group reported revenues of $69.0 million – a  5.6% year-over-year decrease. Diluted net loss attributable to shareholders per American Depositary Share (“ADS”) was $0.06. Herman Guo, Chairman and Chief Executive Officer, commented:

The robust growth of our mega-size LED screens network, our cost control strategy, and our efforts to turn around our unprofitable product lines are helping the Company to get on the right track back to profitability.

Our partnership with HNA group to provide in-flight internet connectivity service and in-air multimedia platform is a significant step for us, and we expect it to become a future growth driver for the Company.

Disclosure: none

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