San­power launch­ing fund to buy cin­e­mas

China Daily (Canada) - - BUSINESS - By REUTERS

Chi­nese con­glom­er­ate San­power Groupis­launchin­ga­fund­with­a3­bil­lion yuan ($435 mil­lion) tar­get that will be used to ac­quire up to 150 do­mes­tic cin­e­masin abeton­rapid growth in the coun­try’s movie mar­ket, two sources with di­rect knowl­edge of the mat­ter said.

San­power is in talks with sev­eral do­mes­tic in­sti­tu­tional in­vestors, in­clud­ing banks and in­vest­ment funds, for con­tri­bu­tions. The pri­vately-owned con­glom­er­ate it­self will com­mit 20 per­cent to 30 per­cent of the fund’s cap­i­tal, they said, adding that it is ex­pected to close in the se­cond half of 2017.

The Nan­jing-based group, founded by its bil­lion­aire chair­manYuanYafei in 1993, shot into in­ter­na­tional promi­nence in 2014 af­ter buy­ing Bri­tain’s high-street re­tailer House of Fraser. It has spent about $4.2 bil­lion on do­mes­tic and out­bound ac­qui­si­tions over the past two years.

San­power’s maiden en­ter­tain­ment in­dus­try buy­out fund will en­able it to raise ex­ter­nal pri­vate cap­i­tal to sup­port its ac­qui­si­tion spree with­out dip­ping into its own bal­ance sheet or seek­ing debt-fund­ing.

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