HONG KONG Aug 22 Building construction and
property firm Paul Y Engineering Group Ltd (PYE) said
it would buy a 50 percent interest in film joint venture
Legendary East for $220.5 million, a deal to be funded by a
proposed placing of new shares.
In a filing to the Hong Kong bourse late on Sunday, PYE said
it would place shares at HK$0.65 each, raising net proceeds of
about HK$2 billion to fund the acquisition and the remainder
would be used for working capital.
The new shares would be placed to private equity firm AID
Partners, and through UBS AG, to other institutional and
Legendary East, the Asia arm of leading global filmmakers
Legendary Pictures, also intends to establish a credit facility
to fund film productions and operations, PYE said, adding it
planned to reduce its exposure on its existing construction,
civil engineering and property-related businesses.
On completion, PYE will hold 50 percent of Legendary East,
Legendary East management 40.1 percent and Huayi Brothers
International Ltd 9.9 percent.
For the statement, please click here
Shares of PYE were set to open 22.2 percent up on Monday.
(Reporting by Donny Kwok; Editing by Jacqueline Wong)