Bona's shareholding rose to 50% in the winter, and its valuation is only 1/7 of Huayi. It has huge potential

Correspondingly, Yu Dong, chairman and CEO of Bona Films, has jumped from 30% to 50%, firmly controlling the company.

On April 11, Bona Films issued an announcement stating that the company had completed its privatization on the 8th of that month and officially withdrew from Nasdaq from now on. As the first China film and television company to go public in the United States, Bona Films has once again become the focus of attention with its return. During Bona's return, Fosun International and Sequoia Capital have become "small players", their shareholding ratios have dropped to 4% and 5% respectively. At the same time, among the buyer's consortium, Alibaba Pictures, which holds the largest shareholding, has also been diluted from 10% to 8.94%. Correspondingly, Yu Dong, chairman and CEO of Bona Films, has jumped from 30% to 50%, firmly controlling the company.

Alibaba Pictures 'shareholding ratio dilutes Bona Pictures' delisting announcement also means that after a year, the first China film and television company to land on NASDAQ will soon return to the A-share market. On December 15, 2015, Bona Films announced that a privatization agreement had been reached. It is estimated that the privatization will be completed in the second quarter of 2016 and will enter the A-share market before the end of the year. According to the privatization agreement, Bona Films will acquire all of the company's shares at a price of US$27.4/common share, which also means that based on the total share capital of Bona Films of 31.4 million common shares, the company's valuation reached US$860 million at that time.(equivalent to approximately RMB 5.556 billion).

In this transaction, 10 companies including Alibaba Pictures and Tencent joined the buyer's consortium as new members, which attracted a lot of attention for a time. This also reminded many people of Yu Dong's "future film and television companies will all work for BAT" to ignite the entire film and television industry three years ago.

It is worth mentioning that at that time, Alibaba Pictures also issued an announcement stating that the company would invest approximately US$86 million (equivalent to approximately US$556 million) and join the buyer's consortium through its wholly-owned subsidiaries to participate in the privatization of Bona Pictures. transaction. However, according to the reporter, at that time, Alibaba Pictures planned to acquire 10% of Bona Pictures 'shares for US$86 million. According to the recent announcement of Alibaba Pictures, the equity acquired became 8.94%. In other words, Ali's shareholding ratio has been diluted by 11.86%, and Bona Films's valuation has also climbed to US$962 million (equivalent to approximately RMB 5.982 billion).

In this regard, a relevant person from Bona Pictures revealed in an interview with reporters that the decrease in Alibaba Pictures 'shareholding ratio was mainly due to the dilution of options."In fact, the shareholder shareholding ratio is similar to when the signing of the merger agreement was announced."

Although the equity has been diluted, compared with other private film and television giants with similar domestic market shares, Bona Films's valuation is still a "cabbage price". Wind data shows that as of April 12, Huayi Brothers 'total market value was 39.65 billion yuan, approximately equal to 7.14 times that of Bona Films; Enlight Media's total market value was 37.360 billion yuan, approximately equal to 7.24 times that of Bona Films.

However, Bona's thoughts are very clear in the future and will definitely impact the A-share market. An analyst who declined to be named said,"There is no doubt that after Bona goes public again, the value of Ali's 9% stake will be more than 500 million yuan." So for Ali, this is definitely a guaranteed deal and it is very cost-effective."

Yu Dong's shareholding ratio has increased to 50%. However, Fosun International and Sequoia Capital are not very interested in this seemingly lucrative deal. According to the reporter, during this privatization process, with the joining of Alibaba and Tencent, Fosun International and Sequoia Capital are quietly withdrawing.

In fact, when the reporter checked through Bona Pictures 'long-term announcements, he found that before the signing of the privatization agreement, Fosun International sold 13.9% of the company's shares to Yu Dong at a price of US$27.2/common share. The transaction price was $119 million. After the transaction was completed, Fosun International, Sequoia Capital, Tencent, and Alibaba Pictures held 6.2%, 5%-6%, 7% and 10% of the company's shares respectively, while Yu Dong held 44.3%. Since then, after a long process of privatization, the equity of buyer's consortiums such as Alibaba Pictures has been diluted, and Yu Dong's private ownership of the company has reached about 50%. "During the privatization of Bona Pictures, the buyer consortium included Alibaba Pictures, Tencent, Jinshi Fund, Safre Capital, Sequoia Capital, and Fosun Group. At present, the shareholding ratios of the above shareholders are approximately 9%, 6%-7%, 13%, 6% 5%, and 4%." The above-mentioned relevant person told reporters.

In this regard, Shen Meng, executive director of Xiangsong Capital, believes that "whether it is privatization or re-listing, if the shareholding of the major shareholder of China Stock Exchange can remain above 30%, no one can challenge his status as the largest shareholder. Generally speaking, 35% is very high. During the privatization process of China Stock Exchange, the founder usually maintains a shareholding ratio of more than 30% as a major shareholder, which makes it difficult to attract attacks from private equity funds. In addition, major shareholders will also conduct certain screening of the privatization consortium and select some that support themselves more, such as granting them controlling rights or even voting rights."

Editor: yvonne