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PROPERTY investment firm Imperium Crown is planning to invest S$5 million in two cineplexes in China, which it says will open opportunities for the group to tap into China's booming film industry.
In an exchange filing on Tuesday morning, the group said that it will buy a 30 per cent stake each in the two companies under Yinguang group for S$1.3 million and S$3.7 million respectively.
One company, Linyi Yinguang Cineplex Management Co, comprise cineplex assets of five cinema halls in Linyi City that are scheduled to begin operations in June next year.
The other company, Zaozhuang Yinguang Cineplex Co, is being developed into eight cinema halls, an antiques auction house and retail outlets. Located in Zaozhuang City, the cineplex development will be completed in the second half of next year.
"We are excited about gaining exposure to the Chinese film market," said Imperium Crown CEO Jinn Woei. "China has approximately 23 theatres per million residents as compared to the United States, which has roughly 100 theatres per million. Given the popularity of movies amongst Chinese urbanites, the Chinese film industry has huge potential for growth."
"We are excited that these acquisitions, when they materialise, will meaningfully reflect the panning out of our strategy in venturing into the property management services sector."
Imperium crown will finance the proposed acquisitions by internal funds and bank borrowings. It will also have the option to acquire an additional 19 per cent each in the two Chinese companies based on their prevailing valuations, for 12 months after the signing of the conditional sale and purchase agreements.