FOSUN International Ltd said it had bought a 13.3-percent stake in Focus Media Holding Ltd to become its biggest shareholder, according to a statement to the Hong Kong stock exchange yesterday.

The Shanghai-based investment holding company of Shanghai Fosun High Technology (Group) Co has paid a total of US$150.1 million for 17.3 million American depositary shares of Focus Media between November 17 and December 22 on the Nasdaq in New York. Focus Media rose 4.24 percent to close at US$9.59 on Tuesday.

The Nasdaq-listed Chinese advertising company has just announced on Monday that it would sell its digital out-of-home ad network to Sina Corp for US$1.3 billion. Sina would issue 47 million ordinary shares to acquire the out-of-home operations of Focus, including LCD display, poster frame and in-store networks. The deal will be valued at about US$1.37 billion based on the closing price of Sina on Nasdaq on Tuesday. The all-stock deal has been approved by both boards of directors and does not need shareholder approval.

The market is also concerned with Sina's future revenue as the digital outdoor business has slower growth potential compared with Sina's own operations.

Sina's third quarter profit surged 28 percent from the same period last year to US$22 million.

Focus Media's digital out-of-home operations expanded an average of 10 percent in the past two years and is expected to generate earnings of US$130 million in 2009.