Bona wins $20 million Fosun investment

Bona Film Group Ltd, one of China's leading film distributors, has secured an investment from Fosun Group.

Fosun Group, a leading company in industrial operations, property development, insurance and investment, acquired a 6.4 percent stake in Bona Film Group for $20.8 million, according to the announcement.

Fosun acquired the shares from Matrix Partners China Funds and some of Bona's pre-IPO shareholders. With the transaction completed, Bona's financial investor Matrix Partners China Funds will exit its position.

"Fosun has extensive experience and past successes in multiple areas, including property development in many major Chinese cities, and we believe this investment will create meaningful synergies between the two parties," said Yu Dong, chairman and chief executive officer of Bona Film Group.

As a result of the transaction, Yu Dong's ownership will be reduced from 27 percent to approximately 24.1 percent of shares in the company.

Film distribution and theater businesses provided the most lucrative sources for Bona's financial performance and the company said that it planned to increase the number of theaters from 20 to 40 by the end of 2014.