Shulou(Shulou.com)11/24 Report--

CTOnews.com September 19 news, today Ali Da Entertainment Group's Alibaba Film Group Co., Ltd. announced that it has signed a share purchase agreement with Alibaba Investment Co., Ltd, a wholly-owned subsidiary of Alibaba Group Holdings Limited ("Alibaba Group"). Alibaba Pictures will conditionally acquire all equity interests in Pony Media Holdings Inc. (the "target company"), which operates the "barley" brand. Alibaba Pictures will further build the brand awareness of its offline entertainment business by expanding the upstream influence of the "Barley" brand in the value chain of live entertainment industry, such as event hosting and promotion, venue operation and artist brokerage.

With a total consideration of US $167 million (CTOnews.com Note: currently approximately RMB 1.217 billion), the company will issue 2513028847 common shares to Alibaba Investment Limited at HK $0.52 per share, which is the volume-weighted average price of the Company's shares on the Stock Exchange of Hong Kong Limited (the "Stock Exchange of Hong Kong") for 30 consecutive trading days prior to the signing date. Immediately after the completion of this share offering, Alibaba Group's shareholding in Alibaba Pictures will increase to about 54.26%.

The target company is a company incorporated in the British Virgin Islands on December 17, 2004. Through the barley brand, Target Group is a leading supplier of live performances, offering events such as concerts, music festivals, live performances, dramas, sporting events and exhibitions in China.

After the acquisition, the Group, together with the target company, will be positioned as the flagship offline entertainment platform of Ali Entertainment Group. By further expanding the upstream influence of barley brand in the value chain of live entertainment industry, such as event hosting and promotion, venue operation and artist brokerage, the company consolidates its scale advantages and competitive barriers, and further builds the brand awareness of its offline entertainment business.

As of the date of the announcement, the target company is directly wholly owned by the seller and indirectly controlled by Alibaba Holdings. In July 2014, the seller subscribed for preferred shares at a total consideration of $133 million, accounting for approximately 32 per cent of the equity of the target company (on a full amortization basis). In March 2017, the Vendor acquired all issued and outstanding shares of the Target Company that it did not already own for a total consideration of US $393 million, making the Target Company a wholly-owned subsidiary of the seller.

Alibaba Pictures said it expected to close the deal in the fourth quarter of 2023.

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