Tanjong Entertainment, which currently owns 50% of the joint venture with Golden Harvest, will pay $12.42 m (RM40.2 m) for the entire remaining stakes held by two wholly-owned subsidiaries of Golden Harvest, Golden Harvest Cinemas and Global Entertainment and Management Systems.
The transaction was negotiated on a willing buyer-willing seller basis. Tanjong Entertainment will also repay a loan of $3.35 m (RM10.8 m) owed by TGV to Golden Harvest. The company is a subsidiary of Kuala Lumpur and London-listed Tanjong Group which has power generation and gaming as its core business.
Given the gradual liberalisation of the distribution and exhibition markets in mainland China, the company said in a statement that it aimed to capitalise on such opportunities and redeploy its resources to the Greater China market.
Last February, Golden Harvest completed the sale of its entire stakes of 40.2% in Malaysia 's largest exhibitor Golden Screen Cinemas (GSC) to Malaysian partner PPB Group for $28.26 m (RM91 m).
However, the company has opted to maintain its business in Singapore. Last month, it resolved a long-standing legal dispute with Australian partner Village Roadshow through an out-of-court settlement. Golden Village was Singapore 's top distributor in terms of box office sales last year.