CITIC, Beijing Weiying Lead $61.5M Investment In Hong Kong Cinema Operator


Hong Kong-based film production and cinema operator Orange Sky Golden Harvest Entertainment Holdings Ltd. has attracted RMB400 million (US$61.5 million) from three Chinese investors in preparation to expand its cinema business in mainland China, according to a disclosure filing.

A fund affiliated with CITIC Securities Co., Ltd. and Beijing Weiying Technology Co., Ltd. led the investment, investing RMB200 million and RMB150 million, respectively.

A third unnamed investor, which is described as a private equity firm focused on film, culture and renewable energy sectors having invested over RMB20 billion cumulatively in the past, also participated.

The investors will jointly acquire a 13.79% stake of the cinema operating unit of the Hong Kong-listed Orange Sky Golden Harvest Entertainment.

The agreement requires the unit, Orange Sky Golden Harvest Entertainment (China), to achieve an initial public offering in four years. The company is required to return capital and interests to investors if failing to do so.

The strategic investment aims to help the Hong Kong-based cinema operator to further expand in mainland China, where box office revenues are expected to grow steadily.

The company already operates 726 screens across mainland China, Hong Kong, Taiwan and Singapore collectively.

Beijing Weiying Technology Co. Ltd. is the company behind online movie ticket booking services platform Wepiao. It received US$105 million series B round of financing from Tencent Holdings Limited, Dalian Wanda Group, and other investors last year.

 
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