China Ruyi Holdings Acquires 49% Stake in Dalian Wanda Group

China Ruyi Holdings, a movie production and online streaming company, announced that one of its subsidiaries will purchase a 49 percent stake in a Dalian Wanda Group investment unit for 2.3 billion yuan ($320.08 million).

The share sale was expected to assist Dalian Wanda, China's largest commercial property developer, in refinancing a $400 million bond due on July 23. Wanda transferred funds to repay the bond, according to financial information provider REDD.

As part of the equity transfer agreement signed on Thursday, Ruyi said in a filing on Sunday that it would pay 200 million yuan in cash to Wanda's subsidiary, Beijing Culture, on Friday and provide Beijing Culture with an interest-free, 45-day loan at a later date.

After the transaction is completed, Shanghai Ruyi, a subsidiary of China Ruyi, will own 49 percent of Beijing Investment.

China Ruyi shares fell as much as 10% in early morning trade after rising 8.3% shortly after the market opened. After being suspended on Friday, the shares resumed trading on Monday.

Ruyi stated that the transaction will broaden its investment portfolio, increasing investment returns and providing high-quality assets to shareholders.