Sanpower launching fund to buy cinemas

Chinese conglomerate Sanpower Group is launching a fund with a 3 billion yuan ($435 million) target that will be used to acquire up to 150 domestic cinemas in a bet on rapid growth in the country's movie market, two sources with direct knowledge of the matter said.

Sanpower is in talks with several domestic institutional investors, including banks and investment funds, for contributions. The privately-owned conglomerate itself will commit 20 percent to 30 percent of the fund's capital, they said, adding that it is expected to close in the second half of 2017.

The Nanjing-based group, founded by its billionaire chairman Yuan Yafei in 1993, shot into international prominence in 2014 after buying Britain's high-street retailer House of Fraser. It has spent about $4.2 billion on domestic and outbound acquisitions over the past two years.