Alibaba affiliate to invest $383m in China's Enlight Media

According to a filing, Enlight Media has sold 2.8 billion new shares to Hangzhou Ali Venture Capital at RMB24.22 apiece through a private placement. The parent company of Enlight Media also subscribed to RMB400 million worth of shares.

The move is a continuation of Alibaba's expansion into media and entertainment. In March last year, it bought a 60% stake in Hong Kong-listed ChinaVision Media Group for HK$6.24 billion ($804 million) and renamed the business Alibaba Pictures Group.

Alibaba and Yunfeng Capital, a private equity firm co-founded by Ma, subsequently acquired an 18.5% interest in Chinese online video firm Youku Tudou. Then in November, Hangzhou Ali Venture Capital purchased a 4% stake in film producer Huayi Brothers Media, a direct competitor to Enlight Media. Ma himself already owns 4% of Huayi.

Beijing Enlight Media is a leading producer and distributor in China. Past productions include 2013 hit "Lost in Thailand." It went public in 2011, becoming one of the first Chinese film companies to achieve a stock market listing. Enlight reported $190 million in revenue last year, up 35% from 2013, while profit rose 4.8% to $68 million.

Three months ago, Enlight Media launched a venture fund with a target of RMB1 billion, to invest in the internet, advanced technology, media and entertainment, e-commerce and healthcare sectors in China. The vehicle, Hanxing Enlight Venture Investment Fund, operates in partnership with China Renaissance.

Hangzhou Ali Venture Capital was set up in 2006. Ma owns 80% of the investment firm, with the other 20% held by Xie.

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• Topics
• Greater China
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• PIPEs
• China
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• PIPE