China's Huayi Brothers Setting Up $130 Million U.S. Subsidiary
The unit will help with Huayi’s overseas expansion plans
Private Chinese production company Huayi Brothers Media Co. will set up a $130 million subsidiary in the United States to invest in the distribution and production of movies and TV shows.
In a regulatory filing to the Shenzhen stock exchange, the company said the subsidiary would help Huayi Brothers expand overseas and would also be used for marketing, promotion and investment, as well as mergers and acquisitions. It will be subject to the usual regulatory approvals.
The group had previously considered investing in Jeff Robinov’s Studio 8 venture, but then pulled out, although it said it might become involved in future distribution opportunities.
In June, Huayi Brothers, which is run by Wang Zhongjun, announced plans to raise $403 million from the issue of 120 million shares and said it would use the capital to invest in film and TV projects.
The filing did not give details about specific projects the subsidiary would be involved in.