China 3D to take over HMV in HK$408mn deal

Hong Kong / DPA

Music and video retailer HMV will be sold for HK$408 million ($52.5 million) to film makers and distributors China 3D Digital Entertainment Limited, which has agreed to the deal with parent company AID Partners Capital Holdings Ltd, according to a statement the two companies filed to the stock exchange on Tuesday.
Both China 3D Digital Entertainment and international asset management group AID Partners Capital are listed on the Growth Enterprise Market (GEM) of the Hong Kong Stock Exchange.
China 3D Digital Entertainment will issue 1.12 billion shares at an issue price of HK$0.365 apiece to AID Partners Capital for HMV, representing 22.59 per cent of its enlarged issued share capital.
After the transaction, AID Partners Capital will become China 3D Digital Entertainment’s largest shareholder. The board of China 3D Digital Entertainment also proposes to change the name of the company to “HMV Digital China Group Limited”.
The issue price of HK$0.365 represents a discount of 19.78 per cent to the closing price of HK$0.455 on March 14, the last trading day before the two companies entered the sale and purchase agreement.
AID Partners Capital said that the disposal is estimated to recognize a gain of approximately HK$224 million before tax and transaction costs directly in profit or loss.
China 3D Digital Entertainment intends to continue developing and streamlining its entertainment, movie production and distribution business through the acquisition, whereby the company will be able to generate a synergistic effect with its
existing lines of business.

Leave a Reply

Send this to a friend