Shareholders in Emperor Entertainment Group (EEG) have approved the takeover of Emperor Multimedia Group (EMG), one of Hong Kong's most ambitious production and distribution outfits.

The deal, which is expected to be completed within a week, means that EMG shifts from being a private entity, wholly owned by Albert Yeung's Questrel company, to becoming a subsidiary of a public company traded on the territory's Growth Enterprise Market. The value of the transaction is $6.55m (HK$51.6m), just short of the value of Questrel's loan to EMG.

For EEG the deal is a substantial change of direction. It is slimming down investments in both its internet businesses and in Taiwan, and moving into film and TV production. For EMG the move is expected to allow it access to easier financing. The companies claim that the takeover will also create an integrated group boasting synergies between production and distribution of music and film.

EMG, which last week began production of The Highbinders, the $35m Jackie Chan action comedy, last year reported a turnover of $2.1m (HK$16.4m) and delivered a consolidated loss of $330,000 (HK$2.61m). Chan is a non-executive director of EEG.