The Academy Of Motion Picture Arts And Sciences Hosts An Official Academy Screening Of SOUTHPAW (Photo : Getty Images)
Wanda Group’s film division raised this week 15.88 billion yuan ($2.44 billion) in private placement of shares.
Wanda Group initially tried to raise only 10 billion yuan ($1.53 billion), but because the offering was oversubscribed, it raised 15.88 billion, disclosed Liu Zhaohui, vice president of Wanda. The additional funds boosted Wanda Group’s value, according to a Credit Suisse report, to 48 billion yuan ($7.37 billion), which places the firm on par with Alibaba Pictures, a public firm with a market capitalization of $5.6 billion.
But Wanda is a private company and has limited disclosure requirements. The shares of Wanda Cinema Line, suspended since end of February, may remain suspended until April, but there would be market updates weekly, reported Variety.
In 2014, Wanda Pictures invested $30 million in “Southpaw,” a boxing movie featuring Jake Gyllenhaal and Antoine Fuqua. Wanda staked a claim in the film ahead of its announcement of a $3.5-billion buy-in Legendary Pictures in January.
The foray into foreign movies represents a shift in focus from domestic Chinese projects such as “The Taking of Tiger Mountain” in 2014 and “The Monkey King” where it was only a minority investor, reported Forbes.
But in 2015, Wanda Pictures took a lead role in the development, finance and production of “Mojin – The Lost Legend,” a blockbuster hit in December which earned over $250 million box office receipts.
Other films where Wanda Pictures took a more active role are “Go Away Mr. Tumor,” which earned $82 million, and “Detective Chin Tang” which earned $127 million. The two movies were shown in 2015. For 2016, Wanda will release on April 1 in PRC moviehouses “Chongqing Hotpot,” featuring Bai Baihe.
