HK company buys remaining 50% Golden Village cinema stake

Movie theatre operator Golden Village runs 11 multiplexes housing 92 screens in Singapore. The new transaction will see Orange Sky Golden Harvest gain full ownership of the leading cinema chain here.
Movie theatre operator Golden Village runs 11 multiplexes housing 92 screens in Singapore. The new transaction will see Orange Sky Golden Harvest gain full ownership of the leading cinema chain here.ST FILE PHOTO

Hong Kong's Orange Sky Golden Harvest Entertainment (Holdings) (OSGH) will buy the remaining 50 per cent of the Golden Village cinema business from Australia's Village Roadshow.

The Australian company will net A$165 million (S$175 million) off the deal, Village Roadshow said yesterday, realising a net profit after tax of about A$150 million, Reuters said.

Village Roadshow had posted an annual loss of A$66.7 million in the 12 months to June 30 after a 2016 fatal accident at Dreamworld - operated by rival Ardent Leisure - caused a fall in visitor numbers and earnings at other theme parks, SBS News reported.

The company will use the proceeds from the sale to reduce debt, and completion is expected by the year end, Village Roadshow said.

OSGH, the film production, exhibition and distribution firm, already owns the other half of Golden Village. The new transaction will see it gain full ownership of the leading cinema chain in Singapore.

Theme park and cinema operator Village Roadshow had previously agreed to sell its stake to mainboard-listed mm2 Entertainment in July for $184.3 million. But the deal reportedly fell through because OSGH blocked the move in August.

Movie theatre operator Golden Village runs 11 multiplexes housing 92 screens here. It also acts as a distributor, both acquiring some titles and jointly distributing others with Singapore's independent distributors. Established over two decades ago, it was a joint venture between Village Roadshow and Golden Harvest, OSGH's predecessor.

A version of this article appeared in the print edition of The Straits Times on October 03, 2017, with the headline 'HK company buys remaining 50% Golden Village cinema stake'. Print Edition | Subscribe