Alibaba takes control of film group in US$160 million share purchase

Alibaba takes control of film group in US$160 million share purchase

Alibaba Group Holding Ltd said on Monday it will increase its stake in Hong Kong-listed Alibaba Pictures to 51 percent, taking control of the film unit's board.

The logo of Alibaba Group is seen inside DingTalk office, an offshoot of Alibaba Group Holding Ltd,
The logo of Alibaba Group is seen inside DingTalk office, an offshoot of Alibaba Group Holding Ltd, in Hangzhou, Zhejiang province, China July 20, 2018. REUTERS/Aly Song

BEIJING: Alibaba Group Holding Ltd said on Monday it will increase its stake in Hong Kong-listed Alibaba Pictures to 51 percent, taking control of the film unit's board.

Alibaba Pictures will issue one billion new shares to Alibaba at HKUS$1.25, valuing the exchange at roughly HKUS$1.25 billion (US$159.9 million), the e-commerce firm said.

Currently, Alibaba owns a 49 percent stake in the firm.

"The proposed share purchase is a vote of confidence in Alibaba Pictures, and we will continue to invest resources," Alibaba chief Daniel Zhang said.

Alibaba Pictures, which listed in 2016, operates under Alibaba's Digital Media and Entertainment business.

(Reporting by Cate Cadell; Editing by Stephen Coates)

Source: Reuters

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