(Yicai Global) Dec. 25 -- Cultural Investment Holdings has scrapped plans to buy CNY3.1 billion (USD450 million) worth of shares in Wanda Film Holding, citing major changes in the capital market environment.

The two firms have already agreed on a schedule to refund the payments already made, the state-owned would-be investor said in a statement last night. It had planned to buy 60 million shares, or 5.1 percent of equity, for CNY51.96 (USD7.42) a share.

Shares in Beijing-based Cultural Investment, which is mostly engaged in the film, television and gaming sectors, rose 1.4 percent to CNY3.61 in today's morning session.

Cultural Investment and China's largest e-commerce player Alibaba Group Holding agreed in February last year to buy a combined 12.77 percent of equity in Wanda Film, with Alibaba picking up nearly 7.7 percent for CNY4.7 billion.

Cultural Investment was contracted to make good on its initial consideration for the deal in March 2018, but the target's share price has been on a rollercoaster ride since the three struck their agreement. Wanda Film's shares [SHE:002739] closed at CNY17.8 yesterday.

Alibaba is holding up its end of the bargain and will continue to acquire the shares. It held 6.5 percent of Wanda Film's equity as of the end of the third quarter of this year, making it the firm's second-largest shareholder.

Editor: James Boynton