Wanda Cinemas, part of the vast Dalian Wanda Group conglomerate, said on Monday it is planning to acquire a 97% stake in Wanda Media in a deal worth more than 11.61 billion yuan (US$1.78 billion), Yicai.com reported.
Wanda Media is a film production and distribution subsidiary of Wanda Group. Thus, by acquiring the company, Wanda Cinemas aims to expand its main business in the investment, production and distribution of films and TV dramas, as well as the launching and operation of online games.
It is part of Wanda Cinemas’ effort to become the leading pan-entertainment platform in China.
After the transaction, Wang Jianlin, founder of Wanda Group will hold a total 41.75% of Wanda Cinemas.
Trading in Wanda Cinema stock may resume after receiving the Shenzhen Stock Exchange’s reply regarding the acquisition.