Xinhua Finance Media (XFML) said it has agreed to acquire 100 percent of consulting and advertising services company Singshine (Holdings) Hong Kong Ltd for at least 7.9 million US dollars in cash and 50,000 XF Media shares.

Xinhua Finance Media, a Nasdaq-listed unit of Xinhua Finance Ltd, said Singshine's current owners could receive another 50,000 XF Media shares, which are currently equal to 25,000 XF Media American depositary shares, as well as cash based on Singshine's financial performance in 2007, 2008 and 2009.

Xinhua Finance Media said the deal, which is expected to be completed by June 15, will contribute to earnings this year.

The company said in a statement that the acquisition will expand its advertising presence in the wealthy South China province of Guangdong.

It said that Singshine unit Singshine Communication Co has exclusive contracts with various radio channels in Guangdong for sales management and program consulting services. Singshine conducts promotional activities in China through its Singshine Marketing Service Co unit.

Shanghai-based parent company Xinhua Finance Ltd is a financial news and information company with a listing in Tokyo.