BEIJING – The topper of China’s largest privately held distrib Bona, Yu Dong, has upped his stake in the company and hired an investor relations firm to make it more attractive to investors.
Bona has been one of the more energetic Chinese companies trying to attract the interest of Hollywood, but since it listed on the Nasdaq in 2010, its shares have under-performed.
Yu is spending $16.5 million to buy 1.5 million shares at $11 per share from venture capital group Sequoia Funds.
The deal will give Yu 42% of the company, while Sequoia will have 5.42% of the shares outstanding.
“My personal purchase of these shares reflects my confidence in the soundness of our business fundamentals and my excitement about the opportunities that lie ahead,” Yu said in a statement.
The group has retained the Piacente Group, with offices in New York, California and Beijing, as its investor relations consulting firm.
The move is significant as it shows how Chinese firms are waking up to the need to be more transparent if they are to woo overseas investors.
As well as distribbing pics around the Greater China region, Bona also has production interests, runs a talent agency, and owns and operates 11 movie theaters with plans to open 30 to 40 more in China.