Company expands war chest for acquisitions
HONG KONG – China’s Huayi Bros. Media is to sell a 49% stake in its technology subsidiary Huayi Bros. (Tianjin) to private investors.
The sale to Beijing Huaxin Virtual Equity Investment Partnership will raise 539 million yuan ($87 million).
Huayi said that the transaction is an important step in developing its brand licensing and of cultural tourism businesses, allowing it to accelerate development and seize opportunities.
Together with last week’s proposed launch of a $403 million commercial paper placement, Huayi would be more than capable of financing the mooted $120 million-$150 million investment in Jeff Robinov’s Studio 8 company. Huayi is believed still to be negotiating with Robinov, though Chinese conglomerate Fosun Intl. last week got a jump on Huayi by announcing its undisclosed investment in the startup.