Date
23 April 2019
Alibaba said the share purchase is a vote of confidence in the Hong Kong-listed film company. Photo: Reuters
Alibaba said the share purchase is a vote of confidence in the Hong Kong-listed film company. Photo: Reuters

Alibaba takes control of film group in US$160 mln share purchase

Alibaba Group Holding Ltd. said on Monday it will increase its stake in Hong Kong-listed Alibaba Pictures (01060.HK) to 51 percent, taking control of the film unit’s board, Reuters reports.

Alibaba Pictures will issue one billion new shares to Alibaba at HK$1.25, valuing the exchange at roughly HK$1.25 billion (US$159.9 million), the e-commerce firm said.

Currently, Alibaba owns a 49 percent stake in the firm.

“The proposed share purchase is a vote of confidence in Alibaba Pictures, and we will continue to invest resources,” Alibaba chief executive Daniel Zhang said.

Alibaba Pictures, which listed in 2016, operates under Alibaba’s Digital Media and Entertainment business.

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CG

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