China Mass Media (CMM) Declares Special Dividend

China Mass Media Corp. (NYSE: CMM) has announced that on May 22, 2010, the board of directors of the Company declared a special dividend of 71,637,500 additional ordinary shares of the Company, par value $0.001 per share, for the financial year ended December 31, 2009. The board of directors proposed that the special dividend be distributed in the form of HK Shares, as defined below, subject to the approval by an ordinary resolution of the shareholders of the Company at an extraordinary general meeting to be convened on July 19, 2010. For full details of the proposed stock dividend and the Company's extraordinary general meeting, please refer to the materials delivered by the Company's depositary bank for an explanation of how to claim the distribution. The Company has applied for the listing of its ordinary shares (the "HK Shares") on The Stock Exchange of Hong Kong Limited ("Hong Kong Stock Exchange"). There can be no assurances that the Company will be able to achieve a successful listing of the HK Shares on the Hong Kong Stock Exchange. Each holder of the Company's ordinary shares as of June 16, 2010 (the "Record Date") will be entitled to receive one (1) ordinary share for every ten (10) ordinary shares held as of the Record Date. Each ADS holder will be entitled to receive three (3) HK Shares for each ADS held as of the Record Date. No fractional shares will be issued by the Company. In the event the HK Shares are listed on the Hong Kong Stock Exchange on or prior to December 31, 2010, the special dividend will be payable at the election of each holder of ADSs in the form of HK Shares listed exclusively on the Hong Kong Stock Exchange, or if such holder does not so elect to receive HK Shares, net cash proceeds from the sale of such HK Shares through the Hong Kong Stock Exchange. All elections will be irrevocable. Investors who do not timely elect to receive HK Shares will be deemed to have appointed the broker to be designated by the Company for such purpose in due course (the "HK Broker") as its agent for the sale of the applicable HK Shares and will receive net proceeds from such sale through the Hong Kong Stock Exchange. There can be no assurances that the HK Broker will be able to sell the HK Shares on the Hong Kong Stock Exchange in a timely manner or on commercially reasonable terms. In the event the HK Shares are not listed on the Hong Kong Stock Exchange on or prior to December 31, 2010, the special dividend will be payable solely in the form of additional ordinary shares. In such event, each holder of the ADS as of the Record Date will be allotted and issued one (1) ADS for every ten (10) ADSs held as of the Record Date, notwithstanding any prior election made by such holder.... Read more