Bilibili Announces Equity Investment in Huanxi Media
August 31 2020 - 4:00AM
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.
Pursuant to the Business Cooperation Agreement,
Bilibili will gain exclusive online broadcasting rights other than
Huanxi’s own online platform to existing and upcoming releases of
Huanxi Media-owned films and TV drama series, including the highly
anticipated releases of LEAP (Duo Guan) and Run for Young (Feng
Quan Shao Nian De Tian Kong). Bilibili will also be granted first
right of refusal to any new films and TV drama series developed
under Huanxi Media’s expansive portfolio of broadcasting contracts
with a number of China’s leading directors.
Ms. Carly Lee, Vice Chairwoman of the Board
and Chief Operation Officer of Bilibili, said, “We are actively
broadening and diversifying our content to appeal to a wider
audience. The key investments we are making now support our future
growth, and build on the early momentum we achieved in the first
half of the year. We believe Huanxi’s library of high-quality
content, as well as their relationships with China’s top directors,
align with our strategy to continuously bring in rich new content,
and open new opportunities to drive more and diverse demographics
to our industry-leading entertainment platform.”
Mr. Steven Xiang, CEO of Huanxi Media, said,
“This strategic partnership will bring significant benefits to both
companies. We will integrate our resources to provide our audiences
with an increasing number of high-quality content.”
About Bilibili Inc.
Bilibili represents an iconic brand of online
entertainment with a mission to enrich the everyday life of young
generations in China. Bilibili is a full-spectrum online
entertainment world covering a wide array of genres and media
formats, including videos, live broadcasting and mobile games.
Bilibili provides an immersive entertainment experience and
high-quality content that caters to the evolving and diversified
interests of its users and communities, and has built its platform
based on the strong emotional connections of Bilibili’s users to
its content and communities.
For more information, please
visit: http://ir.bilibili.com.
About Huanxi Media
Huanxi Media is a company listed on the Main Board of the Stock
Exchange of Hong Kong Limited (stock code: 1003) and principally
engaged in media and entertainment related businesses, including
development and investment in films and TV drama series, as well as
operation of a streaming platform.
For more information, please
visit: https://www.huanximedia.com/
Safe Harbor Statement
This announcement contains forward-looking
statements. These statements are made under the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “future,”
“intends,” “plans,” “believes,” “estimates,” “confident” and
similar statements. Among other things, statements regarding the
expected closing of the transaction in this announcement are or
contain forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in
any forward-looking statement, including but not limited to, those
included in Bilibili’s filings with the SEC. All information
provided in this press release is as of the date of this press
release, and Bilibili undertakes no duty to update such
information, except as required under applicable law.
Exchange Rate
This announcement contains translations of certain Hong Kong
dollars (“HKD”) amounts into U.S. dollars (“USD”) at specified
rates solely for the convenience of the reader. Unless otherwise
stated, all translations from HKD to USD were made at the rate of
HKD7.7502 to US$1.00, the noon buying rate in effect on August
21, 2020 in the H.10 statistical release of the Federal Reserve
Board. The Company makes no representation that the HKD or USD
amounts referred to could be converted into USD or HKD, as the case
may be, at any particular rate or at all.
For investor and media inquiries, please
contact:
For Bilibili in China:
Bilibili Inc.Juliet YangTel: +86-21-2509 9255 Ext.
8523E-mail: ir@bilibili.comThe Piacente Group, Inc.Emilie
WuTel: +86-21-6039-8363E-mail: bilibili@tpg-ir.com
For Bilibili in the United States:The Piacente
Group, Inc.Brandi
PiacenteTel: +1-212-481-2050E-mail: bilibili@tpg-ir.com
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