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Ron Burkle’s investment vehicle The Yucaipa Companies has increased its stake in Chinese media firm Xinhua Financial Media Limited (NSDQ: XFML). The company will issue $30 million in preferred shares that convert at a price of $6.00 per American Depository Shares (ADS). XFML ADSs currently trade at $4.58. The preferred shares are subject to a one-year lockup, and will pay an interest rate of 8 percent. The investment brings Yucaipa’s stake in the company to 12 percent. Back in October, the firm spent $25.7 million on 4.28 million ADRs at a price of $6.00 each, which it acquired from company insiders. As long as Yucaipa holds onto at least 50 percent of its holdings in the company, it will be eligible to hold onto at least one board seat. Release.
Disclaimer: Larry Kramer, our board member, recently joined Xinhua