Fosun, which is listed on the Hong Kong Stock Exchange, is paying $10.4 per share for 2 million shares (equivalent to $5.40 for each of Bona’s American Depositary Shares), giving it 6.4% of the company.
The investment allows Matrix Partners China Funds to complete its exit from Bona. Other pre-IPO investors have also exited and chairman and CEO Yu Dong cuts his personal holding to 24.1%.
“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,” said Yu. In particular he is hoping that Fosun’s backing will help Bona as it expands its movie theater business.
Bona floated its shares in Dec 2010 at $8.50 per ADS, but has seen them trading below $5 for most of the past year, a performance which may have reflected the company’s uneven performance as well growing investor caution about US-listed Chinese companies.
21st Century Fox holds a 19.9% stake in Bona having acquired it as News Corp in May 2012.