Media Asia secures Chinese private equity funding through investment deal.
Chinese private equity fund Yunfeng Fund and Hong Kong entertainment conglomerate eSun Holdings, the holding company of Hong Kong film studio Media Asia, have completed a buyout of Hong Kong Rojam Entertainment Holdings Limited, with an investment of $62.9m (HK$490m).
Rojam will be renamed as Media Asia Group Holdings which will cover Media Asia’s film production and distribution business as well as new business in cinema investment and new media in mainland China.
Yunfeng Fund is co-founded by Internet business guru Jack Ma who founded Alibaba and is also a major shareholder of Beijing’s Huayi Brothers Media.
eSun, which owns Media Asia Entertainment, East Asia Music, East Asia Entertainment and Rich and Famous Artist Management, is led by Media Asia chairman Peter Lam Kin Ngok.
The investment deal makes Yunfeng Fund the second-largest shareholder of Media Asia Group Holdings, next to eSun. eSun holds 54.68 percent of the shares, Yunfeng 18.28 percent and Chinese portal site Sina Corp 3.25 percent.
With newly established Media Asia Group Holdings, the company will concentrate on the entertainment market in mainland China and Macau while eSun Holdings will focus on Hong Kong and international market.
According to eSun Executive Director Peter Lam Kin Ngok, the expanded Media Asia’s mainland business will include film production, concerts, artist management, TV production, cinema investment and new media. He says Media Asia’s mainland China business will help internationalize Chinese film business, and for the first time, Media Asia will step into China’s game industry.
In the film production sector, Media Asia will collaborate with China Film Group and Shanghai Film Group to invest and produce 10 films a year. Among them, a few major productions will reach a budget of $100m, according to a statement from Media Asia.