Alibaba Pictures 1060
Posted: Fri Jun 05, 2015 6:15 am
not vested
Alibaba adding new angle to big picture by Ling Wang
Alibaba Pictures Group (1060) is poised to raise at least HK$12.1 billion from a share placement as it sets its sights on ambitious expansion in China's film industry.
The Hong Kong-listed film production unit of the mainland e-commerce giant chaired by Jack Ma Yun announced it will be placing 4.2 billion shares at HK$2.90 each. That will be a 20 percent discount on the stock's last traded price, HK$3.62, at Monday's close.
The stock was suspended on Tuesday but resumed yesterday, when it saw a fall of 5.8 percent. The placement, which will be with six independent institutional or individual investors, represents 19.96 percent of the company's total existing share capital.
Alibaba wants the proceeds for general working capital and to "fund any potential acquisitions arising out of media-related investment opportunities that may arise."
Alibaba Pictures already holds at least 5 billion yuan (HK$6.25 billion), and it has been helping consolidate the entertainment businesses of Alibaba Group and been active in acquisitions.
It completed the acquisition of cinema software service provider Guangdong Yueke Software Engineering for 830 million yuan on Tuesday. And it became known on Wednesday that the group has more than 1 billion yuan to invest in Shanghai- based China Business Network.
Shares in Ali Pictures have gained nearly 150 percent this year. The price saw a boost in April when the group considered injecting assets, including its production financing arm and movie ticketing business, into the film subsidiary.
Source: The Standard
Alibaba adding new angle to big picture by Ling Wang
Alibaba Pictures Group (1060) is poised to raise at least HK$12.1 billion from a share placement as it sets its sights on ambitious expansion in China's film industry.
The Hong Kong-listed film production unit of the mainland e-commerce giant chaired by Jack Ma Yun announced it will be placing 4.2 billion shares at HK$2.90 each. That will be a 20 percent discount on the stock's last traded price, HK$3.62, at Monday's close.
The stock was suspended on Tuesday but resumed yesterday, when it saw a fall of 5.8 percent. The placement, which will be with six independent institutional or individual investors, represents 19.96 percent of the company's total existing share capital.
Alibaba wants the proceeds for general working capital and to "fund any potential acquisitions arising out of media-related investment opportunities that may arise."
Alibaba Pictures already holds at least 5 billion yuan (HK$6.25 billion), and it has been helping consolidate the entertainment businesses of Alibaba Group and been active in acquisitions.
It completed the acquisition of cinema software service provider Guangdong Yueke Software Engineering for 830 million yuan on Tuesday. And it became known on Wednesday that the group has more than 1 billion yuan to invest in Shanghai- based China Business Network.
Shares in Ali Pictures have gained nearly 150 percent this year. The price saw a boost in April when the group considered injecting assets, including its production financing arm and movie ticketing business, into the film subsidiary.
Source: The Standard