Boston, MA 10/01/2013 (wallstreetpr) – A leading integrated film company and one of the biggest film distributors in China, Bona Film Group Ltd (ADR) (NASDAQ:BONA), announced that the firm has secured an investment from the Fosun Group on Monday. Fosun Group is a leading large scale group that mainly focuses on China’s growth momentum in important areas like industrial operations, investment, insurance, property development and asset management.
According to the investment agreement, Fosun group will represent a 6.4% equity stake in the Bona Film Group and will acquire a total of 2 million ordinary shares of Bona at a price of $10.40 per share. Fosun has already acquired Matrix Partners China Funds shares and some of the pre IPO shareholders of Bona. After the transaction, the financial investor of Bona, Matrix Partners will exit its post.
Mr. Dong Yu, one of the most popular Chinese film producer, presenter and the president of Bona Films said that Bona is very happy about this investment by the leading large scale group in China. He also said that this investment will definitely create a meaningful alliance between the two firms as Fosun is one of the most successful groups in China that has several past successes and is extensively experienced in various fields including property development in the major cities of China. Mr. Dong Yu thanked all the investors and partners of Bona and said that Bona Film is looking forward to become the best theatre operator with the great support of its alliances.
As a result of this deal between Bona and Fosun, Mr. Yu’s ownership from the company will be reduced to 7552506 shares and he will have a total of 24.1% of the company’s outstanding ordinary shares. He will also have an option of purchasing 922017 ordinary shares of the company. This transaction is estimated to be closed in the next 10 days.
