Dalian Wanda Group Co. Ltd. has agreed to sell a 12.77% stake in its film subsidiary Wanda Film Holding Co. Ltd. to a pair of investors led by Alibaba Group Holding Ltd. for $1.24 billion, Reuters reported.
E-commerce giant Alibaba teamed up with Chinese state-backed enterprise Cultural Investment Holdings Ltd. for the investment, which is in line with Wanda's goal to "bring in shareholders with strategic value," according to the report.
The deal will also enable Wanda to raise more funds and tap into Alibaba's big data capabilities, while also being able to seize tourism-related opportunities with Cultural Investment's help.
Wanda will retain control of Wanda Film with a 48.09% holding following deal completion, according to Reuters.
The deal came in a week after Wanda struck a separate deal to sell a 14% stake in its property unit Dalian Wanda Commercial Properties Co. Ltd. to a consortium of investors led by Tencent Holdings Ltd. for about $5.38 billion.
