Legendary East To Boost $220.5M Through Hong Kong For Film Studio From China

Thisannouncement about another Hollywood-China deal wasjust published towards the Hong Kong Stock Market website previously hour.The result is Legendary Entertainment'sJune news it created Legendary East, a stand-alone entertainment company creating feature film and related content for any worldwide audience. Legendary East relies in Hong Kong, with Chinese management andinternational traders in addition to Thomas Tull's Legendary Entertainment.Today, Legendary East introduced an investment vehicleto inject $220.5M of cashfromPaul Y Engineering Group Ltd by giving new shareson the Hong Kong stock exchange. An investment allows Legendary East to become fully funded studio operating from China."A vital feature of the structure is it provides liquidity for individuals traders in Legendary East which are trading through PYE because PYE's shares are openly exchanged about the HKSE," an insider emails me.Legendary East is brought by Boss Kelvin Wu and Tull, its chairman who isalso chairman/Boss of Legendary Entertainment.As formerly introduced, China media conglomerate Huayi Media will require a vital role as local Chinese production and distribution partner and investor in Legendary East: Hong Kong/La (August 21, 2011) Leading global media company Legendary Entertainment ("Legendary") and Hong Kong-listed Paul Y. Engineering Group Limited ("PYE") (HKSE stock code: 577), today introduced PYE like a potential new investor in Hong Kong-based partnership, Legendary East Ltd. ("Legendary East"). PYE will get a 50% curiosity about Legendary East for any total thought on US$220.5 million. This is funded with a suggested placing of recent shares by PYE to personal equity firm AID Partners, and through UBS AG, with other institutional and professional traders. Legendary East also expects to determine a credit facility to finance film productions and procedures. At closing, Legendary East is going to be collectively held by Legendary and people of Legendary East management (40.1%), PYE (50%) and Huayi Siblings Worldwide Limited ("Huayi Siblings") (9.9%). AID Partners has joined right into a subscription agreement to get US$35 million in PYE, and can be a significant investor of PYE. Legendary East was lately established because the Asia arm of leading global filmmakers Legendary Pictures, having a concentrate on developing and creating world-class British-language films that take advantage of the effective fandom demographic and use Legendarys Chinese ties. The organization may be the vision of Thomas Tull, Legendary Entertainment Chairman and Boss, who together with Chinese born Hong Kong media and finance entrepreneur Kelvin Wu, produced the venture. Legendary East initially intentions of creating one or two major, event-style films yearly for worldwide audiences, from 2013. Thomas Tull, Chairman and Boss of Legendary Entertainment and Chairman of Legendary East said, "We're happy that PYE has devoted to Legendary East. This really is another essential milestone following a recent announcement of Legendary Easts formation. We share a typical vision with PYE by using Chinas rapid economic growth and wealthy cultural background, this can be a filmmaking marketplace increasing. We're devoted to China and also the surrounding region for that long term, and also to creating entertainment that's globally appealing in quality, scale and impact." Tom Lau, Deputy Chairman of PYE, stated, "This proposal to purchase Legendary East isn't just highly value accretive towards the PYE investors, additionally, it provides an attractive chance to broaden and refocus PYEs business activities to make use of the lucrative potential from the filmmaking business in China. We feel the mixture of Legendarys world-class experience of film production, and Huayi Siblings local production and distribution abilities in China, signifies an extremely strong chance for PYEs future growth." Kelvin Wu, Principal Partner of AID Partners and who'll become Legendary East's Boss, stated, "AID Partners is going to be trading US$35 million in Legendary East via PYE, showing our tremendous confidence within this venture as well as in the possibilities for Legendary East to provide massive, world-class films from the Greater China region. Using the combined support of Legendary Entertainment and it is highly effective business design, and also the rapid development of china film market, we're excited to stay in Hong Kong and also to lead to its momentum to restore its status because the Hollywood from the East." Legendary Easts local co-production and distribution partner in China is going to be its proper investor Huayi Siblings, a number one Chinese film conglomerate. Distribution from the films in most other areas from the globe is predicted to become handled by Warner Bros. Pictures, with whom Legendary includes a lengthy-standing relationship. The partnership will initially have five board people, with two hired by Legendary, two hired by PYE and something hired by Huayi Siblings. The board will collaborate carefully having a seasoned management team at Legendary East who've significant experience dealing with Hollywood galleries in addition to Western and Chinese entertainment companies. Legendary East was advised within the suggested placing and constructing of recent shares by PYE by financial experts Centerview Partners LLC. Legendary was advised within the constructing and formation of Legendary East by Goldman, Sachs & Co. Both Legendary and Legendary East informed by lawyers OMelveny & Myers LLP in La and Hong Kong. Anglo Chinese Corporate Finance, Limited may be the financial consultant and Reed Cruz Richards Butler may be the legal consultant to PYE. UBS AG may be the placing agent for PYE. Paul, Weiss, Rifkind, Wharton & Garrison LLP advised Goldman, Sachs & Co. The transaction is susceptible to the fulfillment of certain conditions, including approval from PYEs investors in a Special General Meeting.