Huayi Brothers to Invest in Digital Cinema Server Provider
Shenzhen Stock Exchange, 11/20/12
Chinese film and TV production firm Huayi Brothers (300027.SZ) has announced that its wholly-owned subsidiary Huayi Brothers International Investment has signed a share-swap agreement to purchase 23.25 mln shares (9% stake) in CAG Digital Investment Holdings subsidiary GDC Technology for USD 20.92 mln. The two companies have agreed that Huayi's stake could change based on 2012 and 2013 performance targets and future stock options issued by GDC. Once the transaction is completed, Huayi Brothers International Investment will have the right to appoint one new board member to the GDC board of directors.
Hong Kong-based GDC's primary business is supplying servers for film projection in digital cinemas. Huayi Brothers said the investment was a part of the company's strategic expansion into film distribution, cinema development, and overseas markets.
Keywords: CAG Digital Investment Holdings GDC Technology film investment television digital cinema Huayi Brothers 300027.SZ
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