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Chinese film and exhibition company Bona Film Group said Friday that its board has received a nonbinding proposal from founder, chairman and CEO Yu Dong and existing Bona shareholders Sequoia Capital China and Fosun International to take the company private.
The company went public in late 2010, with its U.S. listing on Nasdaq.
The buyer group offers a “going-private” transaction, which would end the company’s stock market listing and see the group buy all the stock it doesn’t already own for $13.70 in cash per American depositary share, or approximately $27.40 per ordinary share. That would amount to $830 million-$860 million.
Bona said that represents approximately a 23.6 percent premium above the average closing price of the company’s shares over the last 30 trading days up to and including June 11. On Friday, the stock set a new 52-week high of $13.28. Over the past year, it had traded as low as $5.70.
“The board intends to form a special committee consisting of independent directors to consider this proposal,” the company said. “The board cautions the company’s shareholders and others considering trading in its securities that the board just received the non-binding proposal letter from the buyer group and no decisions have been made with respect to the company’s response to the transaction.”
It added: “There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.”
21st Century Fox and News Corp before its split used to own a 19.9 percent stake in Bona. Fosun first bought a stake in 2013. Sequoia is an investor in Bona and a film-funding partner for the company.
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