SINGAPORE (Nov 1): Real estate investment group Imperium Crown on Tuesday announced it is acquiring a 30% stake each in two subsidiaries of Shandong Yinguang Chemical Industry Co. (Yinguang Group) for combined S$5.0 million (RM15.1 million).
Yinguang Group holds real estate assets related to the cultural, media, art assets and businesses within the film industry in China’s Shandong province.
Imperium Crown will acquire a 30% stake in Linyi Yinguang Cineplex Management Co, a cineplex with a built-up area of approximately 2,600 sq m comprising five cinema halls that are scheduled to commence operations in June 2017.
It will also acquire a 30% stake in Zaozhuang Yinguang Cineplex Co, a cineplex development with a built-up area of about 12,000 sq m comprising eight cinema halls, an antiques auction house and retail outlets, which is slated for completion in the second half of 2017.
Both properties will be managed and operated by Zhejiang Yong Le Film and Television Co, which specialises in drama planning, investment, filming, production, and distribution of professional film and television.
In a statement on Tuesday, Imperium Crown says this marks its maiden entry into the Chinese property market, and opens up opportunities for the Group to tap into China’s booming film industry.
“We are excited about gaining exposure to the Chinese film market,” says Imperium Crown’s executive chairman and CEO Wan Jinn Woei. “Given the popularity of movies amongst Chinese urbanites, the Chinese film industry has huge potential for growth.”
Imperium Crown adds that its key strategy going forward is to leverage the strengths of its partners to grow shareholders’ value.
“We are excited that these acquisitions, when they materialise, will meaningfully reflect the panning out of our strategy in venturing into the property management services sector,” says Wan.
In addition to the current proposed acquisitions, Imperium Crown also has the option to acquire an additional 19% stake each in the two Chinese companies based on their respective prevailing valuations.
The proposed acquisitions will be financed via internal funds and bank borrowings.
Imperium Crown says the proposed acquisitions are not expected to have material impact on its net tangible assets or earnings per share for the current financial year.
Imperium Crown last closed at 7 Singaporean cents on Monday. - theedgemarkets.com.sg