P.B. GROUP plans to acquire a 52% stake in DaShiJie P.B. Film and Television Cultural Industry Group
P.B. GROUP announced plans to acquire a 52% stake in Da Shijie P.B. Film and Cultural Tourism Industry Group for a total consideration of HKD 5,200. The joint venture is 48% owned by P.B. No. 3 Capital Holdings Limited and 52% owned by Huaxia Film. As the board believes that the current time is not optimal for development, it has decided to terminate the expansion of the cultural tourism industry in China. Upon completion of the acquisition, the joint venture and operating company will become wholly-owned subsidiaries of P.B. GROUP, and their financial performance will be consolidated into the group's financial statements
According to the announcement from P.B. GROUP (08331), P.B. Three Capital Holdings Limited (P.B. Three, a wholly-owned subsidiary of the company) has established a joint venture in Hong Kong with Huaxia Film and Television Cultural Tourism Industry Group Co., Ltd. (Huaxia Film and Television), named Big Vision P.B. Film and Cultural Tourism Industry Group Co., Ltd. (the joint venture). The joint venture will set up an operating company in China, namely Big Vision P.B. Film and Cultural Tourism Industry (Shenzhen) Group Co., Ltd. (the operating company), to explore and develop matters related to the film and cultural tourism industry (cultural tourism industry).
The joint venture is held 48% by P.B. Three and 52% by Huaxia Film and Television. After discussions between the company and the joint venture partner regarding the development of the cultural tourism industry in China, the company's board of directors believes that it is not the best time to pursue this development. Therefore, based on the principle of prudent investment, the board has decided to terminate the exploration of the cultural tourism industry in China. As of the date of this announcement, the joint venture and the operating company have not commenced any business operations or recorded any revenue.
On November 20, 2024, Huaxia Film and Television signed a share purchase agreement and transfer document to sell and transfer 52% of the issued share capital of the joint venture to P.B. Three (the acquisition), for a total consideration of HKD 5,200. The group currently holds 48% of the issued share capital of the joint venture, which holds all the equity of the operating company. Upon completion of the acquisition, the joint venture and the operating company will become indirect wholly-owned subsidiaries of the company, and their financial performance will be consolidated into the company's financial statements. The group will terminate all cooperation with Huaxia Film and Television and its controlling shareholder Shenzhen Big Vision Cultural Industry Investment Management Co., Ltd. regarding the cultural tourism industry in China.
The acquisition will allow the group to consolidate control over the joint venture and the operating company, thereby simplifying decision-making and enhancing the flexibility of future business strategies
