Focus Media chairman sells shares worth $153M

NEW YORK

Chinese advertising company Focus Media Holding Ltd. said Wednesday that its chairman is selling $153 million in stock.

The previously announced sale of 8.1 million American depositary shares was priced at $18.90, the Shanghai-based company said. The shares closed Wednesday at $19.42, down 60 cents.

The buyer is Goldman Sachs, and Focus Media Chairman Jason Nanchun Jiang is entering into a hedging arrangement with the bank, under which he will profit if the share prices rises above a certain level. Capped call options will cover 10.1 million ADSs, Focus Media said.

The arrangement may affect Focus Media's stock price as Goldman adjusts its exposure to the hedge, Focus Media said.