FOCUS Media Holding Ltd., the advertising company taken private after coming under pressure from short-seller Carson Block, will try again to list in Shenzhen after an earlier reverse-merger plan fell through.

    Hedy Holding Co. will pay 45.7 billion yuan (US$7.2 billion) in cash, stock and asset swaps for Focus Media. That’s the same value of the transaction Focus planned with Jiangsu Hongda New Material Co. before scrapping the deal Monday.

    Investors, led by Carlyle Group LP, bought out Focus Media for almost US$4 billion in 2013 after Block’s Muddy Waters LLC claimed the billboard operator exaggerated its network and overpaid for acquisitions. The company rejected the allegations.

    Guangzhou-based Hedy Holding will also raise as much as 5 billion yuan via private placement at no less than 11.38 yuan per share to help fund the reverse merger.

    “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 a statement.

    Focus Media and Jiangsu Hongda abandoned their merger plan after Jiangsu announced its owner was the target of a regulatory probe. Shares of Jiangsu Hongda, suspended Dec. 10, resumed trading Tuesday and fell by the 10 percent daily limit. Shares of Hedy Holdings have been halted since May 4.

    Focus Media’s founder, Jiang Nanchun, holds 26.73 percent of the company currently. FountainVest Partners, Fosun International Ltd., CITIC Capital China Partners each holds 19.71 percent, 17.43 percent, 9.85 percent, respectively.

    Carlyle Group and China Everbright Structured Investment Holdings also participated in Focus Media’s privatization deal, but it’s unclear how large a stake they each own. (SD-Agencies)