Alibaba Pictures plans to raise 12.18 billion Hong Kong dollars ($1.6 billion) through a share placement with a select investors, the company said in a filing with the Hong Kong stock exchange Thursday.
The proceeds from the share sale will be used to fund working capital needs and media-related acquisitions, it said. The company though has not yet identified specific prospects for acquisitions.
Alibaba Pictures, the entertainment unit of China’s e-commerce giant Alibaba Group, is selling 4.2 billion new shares at 2.90 Hong Kong dollars apiece, a discount of almost 20% from its closing price on June 1, it’s last day of trading before it was suspended on Tuesday pending this announcement. Trading resumed Thursday.
Alibaba Pictures used to be known as ChinaVision Media Group before Chinese billionaire Jack Ma’s company acquired a majority stake in the media firm in June last year.
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