Golden Harvest buys Wu's Chengtian
Chairman's company sells for $11.7 millionHONG KONG -- Golden Harvest Entertainment has bought Chinese film and television production company Chengtian Zhihong from its chairman Wu Kebo for 80 million yuan ($11.7 million), to branch into the film and media production business in China and to centralize its related business within Chengtian Entertainment Group, Golden Harvest announced Tuesday.
The deal entails the transfer of the entire equity interest of Chengtian Zhihong, contracts of Chengtian Entertainment, and its subsidiaries Orange Sky HK, Orange Sky Bohong advertising, and Zhihong technology to Golden Harvest Entertainment subsidiary Golden Harvest Motion Pictures.
Wu and China-based entertainment conglomerate Chengtian Entertainment, which he founded and owns a 80% majority stake, owns 52.74% and 22.13% of Golden Harvest, respectively. Wu set up in 2004 under Chengtian branch Chengtian Zhihong Film and Television Production, to invest, produce and distribute film and television programs in China.
The Chengtian Zhihong deal will bring a reorganization within the Chengtian structure, with all the non-film and television program-related business of Chengtian Zhihong regrouped and transferred back to Chengtian Entertainment Group. Its film and television-related business reorganized and centralized under Golden Harvest, whose present principal business is in film and video distribution and film exhibition in Hong Kong, China, Taiwan and Singapore.
After the deal, Golden Harvest said the group will leverage Chengtian Zhihong’s operation platform to grow in film and media production, film distribution and advertising service business in China.
The last film produced under the Golden Harvest brand was “My Lucky Star” in 2003; but the group has recently invested with Chengtian in Universe Films’ upcoming “Storm Warriors."