May 12, 2016 / 3:16 PM / 4 years ago

China's Wanda Cinema to take over Legendary Pictures for $5.7 billion

Wang Jianlin, chairman of Dalian Wanda Group, speaks during a signing ceremony with U.S. film studio Legendary Entertainment in Beijing, January 12, 2016. REUTERS/China Daily

SINGAPORE (Reuters) - Chinese tycoon Wang Jianlin’s Wanda Cinema Line Corp (002739.SZ), the country’s biggest cinemas operator, said on Thursday it plans to acquire movie-making affiliate Wanda Media for 37.2 billion yuan ($5.7 billion) in cash and shares.

Wanda Cinema, whose parent Dalian Wanda Group acquired U.S. film studio Legendary Entertainment in January for about $3.5 billion, said in a filing with the Shenzhen stock exchange that it now aims to acquire Wanda Media, the current owner of Legendary Pictures.

The company also said it plans to raise up to 8 billion yuan in a private placement of shares to help fund the building of theaters and replenish working capital.

“The completed transaction will help the listed company set a global strategy in consolidating film assets at home and abroad,” it said.

In 2012 Dalian Wanda bought AMC Entertainment Holdings Inc (AMC.N), North America’s second-largest cinema chain, for $2.6 billion.

Wanda Cinema’s shares will remain suspended since a halt on February 24.

(This version of the story has been refiled to remove repetition of text)

Reporting by Lee Chyen Yee in Singapore and Meg Shen in Hong Kong; Editing by Greg Mahlich

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below