State-owned Wasu Media Holding Co. Ltd. (000156.CN) plans to raise 6.54 billion yuan (US$1.05 billion) through a private placement of 286 million new shares to Hangzhou Yunshi Investment, Shanghai Securities News reported Wednesday, citing a statement issued by the seller.
The proceeds will be used for its media assets center and internet TV terminal projects, marking participation of internet firms in the reform of government-owned cultural assets, according to the newspaper.
The buyer is jointly owned by Alibaba Group Holding Ltd. founder Jack Ma and Giant Interactive Group Inc. chairman Shi Yuzhu. After the deal, Yunshi will hold 20 percent stake in Wasu Media and become its second largest shareholder.
Yunshi is also entitled to buy securities issued by Wasu in the future under the same conditions as other buyers, according to Wasu’s statement.
Meanwhile, Alibaba said it agreed to form strategic partnership with Wasu Group, the majority shareholder of Wasu Media, according to the report.
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