GHY Culture's proposed Clover Films stake purchase falls through

DRAMA and film production firm GHY Culture & Media will not be proceeding with its planned strategic investment in the Clover Films group, as their memorandum of understanding (MOU) has expired.

If completed, the deal would have resulted in GHY holding a 51 per cent stake in each of the 3 Clover Films entities, while the existing shareholders would have retained the remaining 49 per cent.

GHY had not signed any definitive documents with the existing shareholders as at Friday (Oct 15), and the exclusivity period under the MOU had expired on Sep 15.

Despite the lapse of the MOU, the mainboard-listed company said it will continue to explore other collaboration opportunities with Clover Films.

GHY also said it will identify other suitable opportunities to strengthen its presence in Singapore and South-east Asia.

The group added that it "remains well-placed with its industry expertise to further grow across the business value chain", supported by a positive net cash position and working capital.

Clover Films distributes international movies in Singapore, Malaysia and other South-east Asian countries. These have included the South Korean blockbuster Train To Busan and its sequel Peninsula, the Academy Award winner Parasite and Jackie Chan's CZ12. It is also involved in the production of local movies in Singapore and Malaysia, such as Jack Neo's Ah Boys To Men series.

Shares of GHY closed unchanged at S$0.585 on Friday, before the announcement.

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