Publicly traded Paul Y Engineering Group has invested in the Hong Kong-based Legendary East, led by Legendary Entertainment founder Thomas Tull (pictured) and CEO Kelvin Wu.

Paul Y (PYE) has taken a $220.5m 50% stake and will issue new shares on the Hong Kong Stock Exchange and in addition Legendary East plans to establish a credit facility to fund film productions and operations.

At closing, Legendary East will be jointly held by Legendary and members of Legendary East management (40.1%), PYE (50%) and Huayi Brothers International Limited (9.9%), the local Chinese production and distribution partner.

AID Partners has entered into a subscription agreement to invest $35m in PYE and will become a significant shareholder of the latter.

Commencing in 2013, the plan is for Legendary East to produce one to two event releases a year for the global market.

“We are very pleased that PYE has committed to Legendary East,” Tull said. “This is another important milestone following the recent announcement of Legendary East’s formation.”