AID Partners Capital Holdings Ltd. (08088.HK), the white knight that rode to the rescue of bankrupt British music and video retailer HMV’s Hong Kong and Singapore business, is spinning it off in a backdoor listing in Hong Kong.
The investment firm is selling the subsidiary that runs the retail chain to China 3D Digital Entertainment Ltd. (08078.HK) for HK$408 million (US$52.6 million), the Hong Kong Economic Journal reported Wednesday.
China 3D will issue new shares to AID Partners, which will become its controlling shareholder, with a 22.59 percent stake.
AID Partners acquired the entertainment retail chain in 2013 when HMV Group Plc was liquidated.
Chief executive Kelvin Wu King-shiu said the subsidiary, HMV M&E Ltd., will continue to run HMV’s business through China 3D, which will benefit from HMV’s physical and online platforms.
HMV M&E wholly owns HMV Marketing, Simply Sino, Smiley Bee and Linkenway.
China 3D, an investment firm specializing in the entertainment business, is applying to change its name to HMV Digital China Group Ltd.
It will hold a 81.63 percent interest in HMV M&E.
[Chinese version 中文版]
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