HONG KONG – Huayi Brothers Media has agreed to sell its 20% stake in Jiangsu Yao Lai Studios Management, a regional cinema operator.
Huayi is selling to Songliao Automobile and will receive RMB464 (US$75 million) for the stake.
Jiangsu Yao Lai will remain 60% controlled by Beijing Sparkle Roll company.
Huayi explained the sale saying that it had made “a good return on investment” and that during its brief ownership it had helped improve the company. Huayi paid RMB210 million (US$34 million) for the stake on September 2013.
Huayi is China’s most established and diversified private sector film group. Earlier this year it was involved in negotiations to invest $120-150 million in Jeff Robinov’s nascent Studio 8 company.