GHY Culture & Media’s wholly-owned Malaysia subsidiary has entered definitive agreements with Studio Management Services Sdn Bhd (SMS) to acquire an indirect 80% interest in Iskandar Malaysia Studios Sdn Bhd (IMS).
The aggregate consideration payable by GHY Malaysia is 8.84 million ringgit ($2.65 million).
According to a March 31 press release, IMS owns and operates integrated film and television facilities in Johor Bahru, Malaysia, which includes film stages, television studios, water filming tanks and production support facilities.
These include five state-of-the-art stages which are versatile working spaces, which also have stage pits for water filming and dry use, as well as two 12,000 sq ft television studios, which are fully equipped and can accommodate large audience television shows.
IMS also offers procurement and design services for feature films and television projects, in addition to technical equipment rentals.
Based on the audited accounts of IMS for the financial year ended Dec 31, 2022; the net asset value of IMS is approximately 32 million ringgit ($9.6 million). There is no open market value for the shares of IMS as they are not publicly traded.
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GHY had partnered with IMS to operate and manage a jointly-owned film set in Malaysia, which was used or is to be used for the production or co-production of the group's drama and film projects and also by third parties.
Several of the dramas and films produced by the group have been filmed and produced in Malaysia, including at the IMS Film Facilities, given its proximity to Singapore, says the company.
The proposed acquisition is in line with the group's strategy to expand the international reach and strengthen the regional presence of its TV programme and film production business, as the acquisition will enable the group to establish its own filming and production base in Malaysia.
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The proposed acquisition is not expected to have a material impact on the consolidated net tangible assets or earnings per share of the group for the financial year ending Dec 31.
Shares in GHY closed 0.5 cents higher, or 1.27% up, at 40 cents on March 31.
