Fox Sells Bona Film Group Stake As Distributor Consolidates Ownership In China

U.S. shares of China’s Bona Film Group are up 7.7% this morning after the distributor announced two deals that help to consolidate ownership: Its founder and CEO, Yu Dong, agreed to pay $71.4M for the 19.3% stake owned by 21st Century Fox. Separately, Bona plans to sell a 13.3% interest to a Chinese investment group, Fosun Group, which already owns 7.5% of Bona. When the dust settles, the Bona chief will own about 32.3% and Fosun will have 20.8%. Fosun’s deal follows its agreement last month to invest in Jeff Robinov’s Studio 8. 

Fox (in its earlier incarnation as News Corp) bought its stake in Bona in May 2012 and later that year announced a multi-picture agreement to co-produce Chinese language films. The companies say today that Fox’s sale of its Bona stake “has no effect on the five film co-productions … or on the robust pipeline.” One of their co-productions, Bride Wars, began principal photography last month. It’s “the first of our five co-production projects with 21st Century Fox, and we are confident it will be a tremendous success, as it will appeal to the fast growing younger Chinese audience, one of the most important audience groups that we want to capture in today’s market,” Bona’s Yu says. (more…)

This article was printed from https://deadline.com/2014/07/fox-sell-stake-bona-film-group-fosun-803736/