Alibaba Pictures Group Ltd, the film and entertainment unit of Alibaba Group Holding Ltd, plans to sell 4.2 billion shares at HK$2.90 apiece to raise HK$12.18 billion (US$1.57 billion) to finance media-related acquisitions, according to a regulatory filing.
The price represents a 13% discount to its last close before the announcement.
In 2014, Alibaba acquired 60% of Hong Kong-listed television and film production firm ChinaVision Media Group for roughly HK$6.24 billion ($804 million). It later renamed the company to Alibaba Pictures Group Ltd.
Alibaba Pictures says it has not yet identified any acquisition targets. But it was reported yesterday that Alibaba has agreed to acquire approximately 30% of Shanghai China Business Network Co. Ltd. for as much as RMB3 billion (US$484 million).