Wanda Film, the cinema operator owned by Chinese billionaire and Wanda Group founder Wang Jianlin, is selling a 7.79-billion-yuan (US$1.24 billion) stake to a pair of investors led by Alibaba, The Paper reported.

Alibaba’s subsidiary, Hangzhou Zhenxi Investment Management Co. Ltd., has secured 90 million shares at a cost of 4.68 billion yuan and will become the second largest shareholder of Wanda Film, holding a 7.66% stake in the company.

Meanwhile, controlling shareholder Wanda Investment Co. Ltd. will transfer another 60 million shares to the state-backed Cultural Investment Holdings Co. Ltd., which will account for a 5.11% share of Wanda Film.

Wanda will remain as the controlling shareholder of the firm, with a 48.09% stake, it said in a statement.