SMI Holdings Group (00198.HK), which is involved in theater operations and entertainment-related business in China, aim to cooperate with Baidu Inc., Hopu Investment Management Co. and Tianan Property Insurance after selling shares to the three entities in a private placement deal.
The company will hasten online-to-offline collaboration with Baidu in relation to ticketing, copyrights, movies and entertainment businesses, the Hong Kong Economic Journal reported, citing chief executive Cheng Chi-chung.
In other initiatives, SMI plans to launch financial products on its lifestyle platform in cooperation with Tianan Property Insurance, Cheng was quoted as saying.
The company, meanwhile, aims to increase its theater number to 160 by the end of this year from the current 110. More than 80 of the new theaters already mapped out will be in second and third-tier Chinese cities.
The project is expected to cost a total of HK$1.5 billion. SMI will use internal funds, apart from the HK$900 million it is raising in a private placement, chief financial officer Jeffrey Ng Kam-tsun said.
SMI has agreed to place a total of 1.2 billion new shares, or 9.55 percent of its enlarged capital, at 75 Hong Kong cents apiece. Half the shares are being sold to Baidu, Hopu and Tianan Property Insurance, while the other 600 million shares will go to other investors.
The placement price represents a discount of 15 percent to SMI’s market price.
Cheng refuted reports that the company will change its name to reflect Baidu’s ownership of about 1.59 percent after the share sale.
Translation by Vey Wong
- Contact us at [email protected]