The backdoor listing of Yinji Entertainment and Media, also known as DMG Media, has turned company chairman Peter Xiao into China’s latest billionaire.
Sichuan Gaojin Food, previously a meat processor, said on Friday it had issued 897.5 million new shares to owners of Yinji Entertainment and Media Company in exchange for a 100% stake in the company.
Xiao, who owned 91% of DMG before the transaction, obtained 74% ownership of Sichuan Gaojin Food as a result. The shares closed at 16.63 yuan at the Shenzhen Stock Exchange on Friday, making Xiao worth $2.2 billion. Preliminary plans for the purchase were announced in April. Xiao also goes by Xiao Wenge.
DMG is involved in advertising and film production. Clients have included Volkswagen, Nike, Johnson & Johnson, Mazda, Jahwa, China UnionPay and China Mobile.
Xiao, who also invests in real estate, ranked No. 313 on the 2014 Forbes China Rich List published on Oct. 28 with wealth of $810 million. China had a record 242 billionaires on the list, up from 168 a year earlier
-with Maggie Chen
-Follow me on Twitter @rflannerychina