China's Bona Film receives $360m after PE-backed privatization

The round values Bona Film at RMB15 billion, according to a statement on the company's WeChat account. CITIC Goldstone Investment, China Development Bank Capital, Zhongzhi Enterprise Group, CMB International, Industrial & Commercial Bank of China, Macrolink Group and electronics products maker Leaguer Stock also participated in the round.

Last June Dong Yu, Bona's founder and chairman, Sequoia Capital and Fosun International proposed to take the company private in a deal worth $832 million. Six months later, Alibaba Pictures and Tencent joined the consortium, while existing investors SAIF Partners and SIG Asia Investment rolled over their shares into the deal. The transaction was completed in April.

Bona is involved in the film production and distribution. It has so far distributed or invested in 290 co-productions films with foreign film makers, operating through a network that covers Greater China, South Korea, Southeast Asia, the US and Europe. In 2016 alone, it produced and distributed 13 Chinese films, with box office revenue of RMB3.7 billion, which equates to 9% of China's total box office revenues.

"The Chinese film industry has entered a consolidation phase after years of wild growth. We see more entertainment companies voluntarily exit the business or acquired by stronger ones next year, which will be an opportunity for people who understand the business," said Yongfu Yu, chairman of Alibaba Pictures.

Both Alibaba and Tencent will work closely with Bona Film as they continue to expand their interests up and down the media value chain.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Consumer
• Media
• Expansion
• China
• Sequoia Capital
• Alibaba Group
• Tencent
• Fosun Group
• Growth capital