GHY Culture & Media Holding Co (GHY) has entered into a non-binding memorandum of understanding (MOU) with the shareholders of the Clover Films Group in relation to a strategic investment in the group.
The proposed investment will see GHY acquiring a 51% stake in each of Clover Films’ three subsidiaries. The existing shareholders, Lim Teck and Paulyn Chua Nga-Lim, will retain a 49% interest in each of the entities.
No details on the potential deal value were disclosed.
Clover Films is primarily engaged in the distribution of international movies in Singapore, Malaysia and other Southeast Asian countries. Established in Singapore in 2009, the group later expanded into Malaysia in 2014.
Movies distributed by the group include Korean blockbuster Train To Busan and its sequel Peninsula, Oscar-winning Parasite, Andy Lau’s Shockwave 2 and Jackie Chan’s CZ12.
The group is also involved in the production of local movies in Singapore and Malaysia, including Jack Neo's Ah Boys To Men series, Eric Khoo’s Ramen Teh and Adrian Teh’s Wira. It is also a curator and developer of content in the region for international over-the-top (OTT) platforms.
Guo Jingyu, executive chairman and group CEO of GHY, says the company looks forward to working closely with Clover Films. “We believe this strategic investment will further enlarge our footprint in Southeast Asia by opening up new opportunities for GHY to work with other distributors and producers in the region and accelerate our growth trajectory,” he says.
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“We are excited to be partnering with GHY and we believe that both the Clover Films Group and GHY can leverage on our identified synergies and tap on our combined resources to expand both our content distribution and production businesses,” says Teck, who is also managing director of Clover Films.
Shares in GHY closed 0.5 cents or 0.7% lower at 71 cents on June 15.
Photo: Albert Chua/The Edge Singapore
