Skip to main content

Chinese magnate revamps Hollywood deal amid crackdown on overseas investment

BEIJING/SHANGHAI (Reuters) - A Chinese magnate, known for the purchase of English soccer club Aston Villa, has revised a plan to buy the majority of a Hollywood studio for $100 million due to increased government scrutiny over outbound deals in the entertainment sector.

Tony Xia said in a tweet on Thursday he would no longer conduct the acquisition via his listed firm Recon Wenyuan Cable Co Ltd, but through a separate non-listed entity due to a "new Chinese policy of film industry restriction."

The government has been tightening regulation following big-money deals overseas, especially in areas such as film, sports and real estate, due to concern about high levels of debt.

It has also restricted the export of capital to deter investment abroad, particularly in sectors unrelated to a firm's core business, in the hope of stemming depreciation of the yuan.

In February, Recon Wenyuan said it planned to spend up to $100 million to buy 51 percent of Millennium Film, whose productions include "The Expendables".

On Thursday, it said interested parties would not pursue the deal as it could not be completed before a previously agreed deadline of Aug. 31.

Later on Thursday, Xia retweeted a Twitter post stating Xia had dropped the deal, and attached a comment saying the post was not accurate and that another entity would "continue the deal".

Xia is not the first magnate to cut a listed firm from a deal. Gao Jisheng's Lander Sports Development Co Ltd pulled out of a deal for English soccer club Southampton in April, before completing it independently earlier this month.

China's cabinet issued rules on acquisitions abroad for the first time this month, possibly signalling a further slowing of funds that have flowed overseas in recent years. Thomson Reuters data showed outbound mergers and acquisitions this year fell 42 percent as of Aug. 14 versus the same period last year.

(Reporting by Pei Li and Adam Jourdan; Editing by Christopher Cushing)



via Sify.com http://ift.tt/2iKv4GB
Labels:

Comments

Post a Comment

Popular posts from this blog

India withdraw Smith protest as boards make peace in DRS row

India have withdrawn an official protest about the actions of Australia captain Steve Smith in the second test as the governing bodies of both countries moved to bring an end to the acrimony surrounding the ongoing four-match series. The Board of Control for Cricket in India (BCCI) had earlier registered a complaint to the International Cricket Council (ICC) over Smith looking to the dressing room for guidance on whether to review an lbw decision during the Bengaluru match. Despite the hosts winning the test to level the series at 1-1 on Tuesday, India skipper Virat Kohli alleged the tourists had indulged in the practice throughout the match, sparking a war of words in the media and a robust response from Australia. The boards released a joint statement on Friday saying the chief executives of both bodies had met in Mumbai on Thursday and agreed to try and bring the focus "back to the game" ahead of next week's third test in Ranchi. "India has always cherished a c...
Post a Comment
Read more

Pogba is one of best players when in form: Ole Gunnar Solskjaer

Leeds [UK], Dec 7 (ANI): Manchester United manager Ole Gunnar Solskjaer has praised midfielder Paul Pogba, saying that he is one of the best players in the world when he is in good touch. "Paul is going to play when he gets his fitness. He is one of the best players in the world when he's in form and we just need to give him time to be 100 per cent fit," Goal.com quoted Solskjaer as saying. Pogba has endured a frustrating 2019-20 campaign to date, having only managed five Premier League appearances in total due to a string of fitness issues. He is currently recovering from an ankle injury and last played for the club on September 30 against Arsenal. Solskjaer had said that the France international will be out of action till December. "It might be 45 minutes in the first game, it might be half an hour, it might be 90. It depends on what game he comes back in and I'm looking back to get Paul back to where I had him about a year ago," Solskjaer said. ...
Post a Comment
Read more

Virat Kohli and co. leave for West Indies

The Virat Kohli led Indian team left for the West Indies for the four-Test series starting July 21st. The team was accompanied by its newly appointed head coach Anil Kumble and other support staff. The 16-member squad will play a tour game against the West Indies Cricket Board President's XI at Warner Park in Basseterre, St Kitts on July 9 and 10. The journey begins. #TeamIndia leaves for the tour of West Indies. #WIvIND http://pic.twitter.com/ebK1jkoFiN -BCCI (@BCCI) July 5, 2016 That will be followed by a three-day warm-up fixture at the same venue from July 14 to 16. The first Test match will be held at the Vivian Richards Cricket Ground in Antigua from July 21 to 25. The other three Test matches will be held at Sabina Park in Kingston, Jamaica (Jul 30-Aug 3), Darren Sammy National Cricket Stadium in Gros Islet, St Lucia (Aug 9-13) and Queen's Park Oval, Port of Spain, Trinidad (Aug 18-22). When India last toured West Indies in 2011, the visitors won the series 1-0....
Post a Comment
Read more