Emperor Cultural Industries (00491.HK) intends to acquire all shares of Tale Success

2022-05-23 0 By

Emperor Culture Industry (00491.HK) announced that the seller Emperor Film Enterprise and the buyer Emperor Cinema (China) (a wholly-owned subsidiary of the Company) entered into the sale and Purchase Agreement on January 31, 2022.Hereby, the Purchaser intends to acquire all the equity of Tale Success Limited and the loans owed by the Target company to the Seller at a total cost of HK $4.0.The target company is an investment holding company incorporated in the British Virgin Islands and a direct wholly-owned subsidiary of the Seller.The Target Group is mainly engaged in the operation of one theatre in Hong Kong and eight theatres in mainland China in six cities including Shanghai, Shenzhen, Chengdu, Foshan, Zhuhai and Hefei.The group has been exploring opportunities to expand its theatre network, particularly in the Greater China region.The acquisition is in line with the group’s overall business development strategy.Upon completion, the group’s film screening network will be further expanded to cover Hong Kong’s central business district and tier 1 and 2 cities in mainland China, which will consolidate the Group’s position in the film screening industry.The theatres under the Target Group are currently operated under the “King” brand and will be consolidated under the Group upon completion.From an operational point of view, this will enable the group to manage the entire King branded cinema network by achieving better resource allocation, enjoying economies of scale and implementing an integrated marketing strategy.From an investment perspective, this will enable existing shareholders and potential investors to better evaluate the group’s investment value by understanding the layout and performance of the group’s entire theatre business.