China’s Bona Film Considers Taking Company Private

Yu Dong, chairman and CEO of
Patrick Frater

China’s Bona Film Group, one of the country’s leading producer-distributors, said that it had received a non-binding proposal to take the company private.

The proposal is made jointly by Yu Dong, the company’s founder, chairman and CEO, together with Fosun International and private equity firm Sequoia Capital.

The offer is to be made at $13.70 per American Depositary share, equivalent to $27.40 per ordinary share.

The company floated on the Nasdaq exchange in December 2010 at $8.50 per ADS.

Bona’s shares have often languished below the flotation price, but have enjoyed a strong recent rally. The buyout offer is a 24% premium to the average ADS price over the past month.

The company nevertheless joins a growing list of Chinese companies that are choosing to exit the U.S. capital markets. Their moves may reflect stringent regulatory controls or dimming investor sentiment toward Chinese companies.

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