Chinese PE firm to acquire Spain’s Imagina Media

Orient Hontai will acquire a 22.5% interest from Torreal, as well as stakes held by Televisa and Mediavideo. Other shareholders, including WPP Group and founders Tatxo Benet and Jaume Roures, will retain their interests. The management team will also be unchanged following the deal.

Proposals from 12 potential investors were initially considered before the founders decided on Orient Hontai. They wanted a new shareholder that will “generate clear synergies and converging interests,” Imagina said in a statement. In addition to consolidating its leadership in Europe and the US, the partnership will provide Imagina with access to emerging markets in Asia, notably China.

Orient Hontai said the acquisition is a crucial step for the firm’s international expansion in Europe under the One Belt One Road strategy. “The acquisition of Imagina will not only enable us to introduce advanced audiovisual production technology to China, but also opens new perspectives for exchanges and cooperation among China, Spain, and Latin-America in fields like content, culture, sports,” said Tony Ma, CEO of Orient Hontai.

Imagina was created through the merger of Globomedia and Mediapro in 2006. With a presence in 28 countries, the company produces and distributes audiovisual content for cinema, TV, exhibitions, and sports events. It also provides technical engineering, transmission, and marketing and advertising services. Imagina reported a turnover of EUR1.54 billion in 2016, up from EUR1.51 billion in 2015. Over the same period, its EBITDA rose from EUR130 million to EUR162 million. 

Orient Hontai is a subsidiary of Orient Securities Capital Investment, which is wholly-owned by publicly-traded Orient Securities. It focuses on healthcare and media technology investments in China and overseas. The portfolio includes gaming companies Shanda Games, China Mobile Games & Entertainment and FunPlus.

The GP intended to buy a controlling stake in US-based mobile marketing platform AppLovin in late 2016. The $1.7 billion worth transaction was abandoned due to a long delay in the regulatory approval process. The US company then opted for a debt-based deal with Orient Hontai.

The Imagina Media transaction, which is subject to regulatory approval, is expected to close in the second quarter of this year.

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