(Yicai Global) Aug. 12 -- Mango Excellent Media has raised CNY4.5 billion (USD694.8 million) in a private placement of shares in which China Mobile Communications Group was the biggest investor, hiking its holdings in the Chinese radio and TV broadcaster to become the second largest stakeholder.

Mango Excellent has sold 90.34 million new shares to three investors at a price of CNY49.81 (USD7.69) each, a 12 percent discount on today’s closing price, the firm said yesterday.

Out of 106 investors vying for a slice of the pie, only three companies were selected. China Mobile’s unit China Mobile Capital Holding, Zhong Ou Asset Management and Aegon-industrial Fund Management paid CNY3 billion (USD463 million), CNY800 million (USD123.5 million) and CNY700 million respectively for 60.23 million, 16.06 million and 14.05 million shares.

Hunan Broadcasting System will remain majority shareholder of the Changsha-based entertainment firm, followed by China Mobile with 7.01 percent equity and Haiyan Ali Venture Capital with 5.01 percent, Mango Excellent said. Previously the Beijing-based carrier held a 4.37 percent stake.

Some CNY4 billion of the proceeds will be used to expand its content library, the broadcaster said. The firm plans to purchase the exclusive online copyright to six film and television works and produce 11 dramas of its own as well as 18 variety shows.

Mango Excellent’s hit programming has seen a big surge in subscribers and income from advertising. In the first quarter, it logged a 61 percent leap in net profit from the same period last year to CNY773 million (USD119 million) and a 47 percent jump in revenue to CNY4 billion.

However, the company’s stock price [SHE:300413] has slumped over 36 percent in the last half year. Today it closed down 1.33 percent to CNY57 (USD8.80).

Editor: Kim Taylor