China Conglomerate to Acquire 6.4 Percent Stake in Country's Bona Film Group
Chinese film company Bona Film Group said on Monday that investment firm Fosun Group would acquire a 6.4 percent stake in the company.
It said that Fosun will buy two million shares at an average price of $10.40 each, or $5.20 per American Depositary Share. The deal is set to close in 10 days.
Fosun agreed to acquire the shares from Matrix Partners China Funds and some of Bona's pre-IPO shareholders.
Rupert Murdoch's 21st Century Fox owns a 19.9 percent stake in Bona.
Bona founder and chairman Yu Dong will see his ownership stake in Bona decline from around 27 percent to approximately 24.1 percent after the deal.
"We are very pleased to announce this investment by one of the leading large-scale groups in China," said Yu. "Fosun has extensive experience and past successes in multiple areas, including property development in many major Chinese cities, and we believe this investment will create meaningful synergies between the two parties."
He didn't provide details, but hinted that Fosun could particularly help Bona with its goal of expanding its exhibition business.
"China's movie theater space is amid an exciting and crucial period of growth, and we look forward to becoming a leading theater operator in China with the support of our investors and partners," the Bona boss said.
"Since our IPO in 2010, we have developed our business tremendously and made important progress to diversify our ownership structure" by bringing in the former News Corp., and now 21st Century Fox, as a strategic investor in May of 2012.