Bilibili Announces Equity Investment in Huanxi Media
SHANGHAI, China, Aug. 31, 2020 (GLOBE NEWSWIRE) -- Bilibili Inc. (“Bilibili” or the “Company”) (Nasdaq: BILI), a leading online entertainment platform for young generations in China, today announced that it has entered into a definitive subscription agreement (the “Subscription Agreement”) with Huanxi Media Group Limited (“Huanxi Media”) (HKEX: 1003), a company principally engaged in media- and entertainment-related businesses, including development of and investment in films and TV drama series, as well as operation of a streaming platform.
Pursuant to the Subscription Agreement, Bilibili will subscribe for 346,626,954 newly issued ordinary shares of Huanxi Media (the “Subscription Shares”) at the subscription price of HK$1.48 (equivalent to approximately US$0.191 (the “Subscription Price”) per Subscription Shares for an aggregate consideration of approximately HK$513,007,892 (equivalent to approximately US$66,192,859). The Subscription Price was arrived at after arm’s length negotiations between the Company and Huanxi Media with reference to the recent trading price and trading volume of the shares of Huanxi Media traded on the Main Board of the Stock Exchange of Hong Kong (the “Hong Kong Stock Exchange”). The closing of this transaction is conditional upon the following conditions being fulfilled: (a) the Listing Committee of the Hong Kong Stock Exchange granting listing of, and permission to deal in, the Subscription Shares; and (b) the Business Cooperation Agreement (as defined below) coming into effect. Upon completion of this transaction, the Company will beneficially own approximately 9.90% of the total enlarged share capital of Huanxi Media.
Simultaneous with the execution of the Subscription Agreement, two wholly-owned subsidiaries of the Company also entered into a five-year business cooperation agreement with a wholly-owned operating subsidiary of Huanxi Media (the “Business Cooperation Agreement”), which will become effective prior to the completion of the subscription of the Subscription Shares. The Company and Huanxi Media will pursue collaboration opportunities in online entertainment for the Chinese market, including films and TV drama series, and developing derivative intellectual property rights of the films and other TV programs owned by Huanxi Media.