You will be redirected back to your article in seconds

Alibaba, Tencent Join Buyout of China’s Bona Film Group

China’s Bona Film Group has settled on definitive terms for its withdrawal from the NASDAQ stock market. Investment subsidiaries of both Alibaba and Tencent are buying into the company.

The deal terms value Bona, China’s leading independent distribution firm, at $1 billion.

Special purpose company, Mountain Tiger International will offer US$13.7 for each of the company’s American Depositary Shares. Among the backers of Mountain Tiger are Alibaba Pictures Group, Tencent subsidiary Willow Investment and two other new investors Uranus Connection and All Gain Ventures. Alibaba Pictures said that it will invest some US$86 million in the deal.

Yu Dong, the company’s founder and chairman, along with Fosun International, Sequoia Capital and SAIF will all roll over their holdings and continue to own 62% of the company.

The deal is currently expected to close during the second quarter of 2016. It has already received unanimous board approval, but still requires two thirds approval from shareholders.

The offer price represents a premium of 6.5% over the Bona’s closing price of US$12.86 per ADS on June 11, 2015, the last trading day before the company announced a “going-private” proposal.

The ‘buyer group’ will fund the deal through a combination of rollover financing worth US$634 million and equity financing provided by the investors and Yu worth US$366 million.

After completion, the share will become private and delist from NASDAQ.

The company has not said what its plans will be thereafter. Numerous other Chinese companies have delisted from the U.S. markets in order to relist on equity markets nearer to home, where valuations for a while were significantly higher.

While the IPO market in China is currently stalled, the company is likely to seek to refloat as soon as possible. Its $1 billion valuation on exit from NASDAQ is puny compared with the prices attached to entertainment concerns in China which, unlike Bona, have yet to turn a profit.

More Biz

  • Plume of black smoke rising from

    Lawsuit Expected Next Week in Response to Universal Music Fire

    A Los Angeles law firm representing several Universal Music recording artists affected by the 2008 fire that destroyed a huge number of master recordings is expected to file a lawsuit as early as next week. King told Variety that he expects to sue for negligence and other torts. He declined to identify his clients, saying [...]

  • Nicholas Sparks

    Nicholas Sparks Responds as LGBT Discrimination Claim Resurfaces

    Nicholas Sparks, the prolific author of romance novels, is facing renewed allegations that he discriminated against gay students at his Christian school in North Carolina. The allegations were first leveled by Saul Benjamin, the former headmaster of the Epiphany School of Global Studies, in a wrongful termination suit he filed in 2014. Benjamin’s suit alleged [...]

  • Tyler the Creator and DJ Khaled

    Inside the DJ Khaled-Tyler, the Creator Chart Battle

    The controversy surrounding the recent chart battle between DJ Khaled and Tyler the Creator — in which a bundle promoting Khaled’s album was disqualified from adding to its sales tally for the May 24 Billboard 200 album chart, allowing the No. 1 spot to go to Tyler’s “Igor” — has been a first-class problem for [...]

  • Cuba Gooding Jr. Diversity

    Cuba Gooding Jr. Charged with Misdemeanor Forcible Touching

    Actor Cuba Gooding, Jr., has been charged with a misdemeanor count of forcible touching following an incident at a nightclub, the New York Police Department said Thursday. Gooding turned himself in to NYPD detectives on Thursday, surrounded by a throng of media. Later in the day, he was arraigned in front of Judge Herb Moses. [...]

  • Contract Placeholder Business WGA ATA Agent

    CAA Challenges Writers Guild of America's Legal Standing in Packaging Fee Lawsuit

    CAA has challenged the Writers Guild of America’s legal standing for bringing forth the lawsuit against Hollywood’s four largest talent agencies over the issue of packaging fees. CAA’s latest legal response to the suit filed by the WGA in Los Angeles Superior Court in April asserts that the guild does not have the right to [...]

More From Our Brands

Access exclusive content