Alibaba Pictures, the film division of e-commerce giant , has agreedto invest 1 billion Chinese yuan in convertible bonds issued by Guangdong DadiCinema Construction, the South ChinaMorning Post reported May 10.
Under the deal, Alibaba Pictures has the right to convertthe bonds into a 4.76% equity holding in Dadi Cinema. In addition to the capitalinvestment, the two companies also agreed to cooperate on movie promotion andmarketing, development of e-commerce and other movie-related businesses.
As of April, Dadi owns 313 cinemas with a total of 1,662screens in 28 provinces and 150 cities across mainland China.
As of May 10, US$1 wasequivalent to 6.52 Chinese yuan.