China's largest privately held distributor sees stock on rise on news of deal
Fosun Group will invest in Bona Film Group Limited, the Chinese film company said Monday.
Under the deal, Fosun will acquire 2 million shares of Bona, which represents a 6.4 percent equity stake in the company. Fosun paid an average price of $10.40 per share.
Bona is the country's largest privately-owned film distributor. It has distributed more than 150 films since launching in 2003.
As a result of the deal, founder Dong Yu's ownership position will drop from 27 percent to 24.1 percent of the company's shares.
Bona Film Group's stock shot up more than 4 percent to $5.35 on news of the deal.