HONG KONG, Jan 25 (Reuters) - Chinese investment company Nan Hai Corp Ltd has agreed to buy a Chinese cinema business from Orange Sky Golden Harvest Entertainment Holdings Ltd (OSGH) for 3.3 billion yuan ($480 million) as it expands in the country’s movie sector.
Nan Hai, which bought the personal care brand Crabtree & Evelyn for $175 million in December 2015, in a statement on Wednesday said it will purchase 100 percent of City Entertainment Corp Ltd, a subsidiary of Hong Kong cinema operator and film production firm OSGH, in a cash deal.
Nan Hai’s shares were up more than 1 percent on Wednesday after the announcement, outpacing a flat overall market.
The move by Nan Hai, which also owns China’s second-largest cinema investment and management firm, Dadi Cinema Group, comes as the country’s film industry is expected to pick up this year after a lacklustre 2016.
City Entertainment operates and manages 76 cinemas with 531 screens across China, according to the statement. ($1 = 6.8775 Chinese yuan renminbi) (Reporting by Julie Zhu)