HONG KONG, March 9, 2015 /PRNewswire/ — The Board of Directors of Pegasus Entertainment Holdings Limited ("Pegasus" or the "Company", stock code: 1326) announced on 6 March 2015 that the Company entered into a conditional agreement on the same date, to acquire the entire interest in Chili Advertising & Promotions Limited (the "Target Company"), which includes an indirect 70% interest in Chili Platinum Advertising and Magazine Publishing Limited ("Chili Platinum"), at a total consideration of HK$68.0 million. Chili Platinum is a company principally engaged in the publication of the luxury lifestyle magazine "Platinum of UnionPay".
The consideration represents a discount of approximately 18% to the preliminary valuation of the Target Group issued by an independent valuer, which is not less than HK$82.6 million; and will be settled partly by cash and partly by the Company’s issue of consideration shares at HK$1.26 per share.
"Platinum of UnionPay" is a magazine which will be provided on a complementary basis to selected premium level cardholders of UnionPay and the target audience group covers the high-end consumer market in mainland China, Hong Kong and Macau. The magazine features a wide range of contents on luxurious lifestyle related products and services, ranging from fashion, jewellery, entertainment, food and restaurants, leisure, to art and culture. The magazine is currently distributed to various high-end private clubs, golf clubs and hotels, and also with selected contents distributed online through a number of digital media, in order to successfully capture the maximum number of targeted readership base.
The Directors are optimistic about the future development of printed and digital media advertising in the China market. In view of the growing consumption of luxury products and services in China, more international luxury brands are strengthening their foothold in China hence encouraging the advertising market for high-end goods. Given the principal target audience of "Platinum of UnionPay" magazines are high net worth individuals and other elite groups in China, who are the selected premium level cardholders of UnionPay with high disposable income, the Company is of the view that this acquisition is able to offer Pegasus the access to an established and considerable high-spending readership base for marketing purposes and therefore enables it to secure a strong competitive advantage within the industry.
Mr. Wong Pak Ming, Chairman of Pegasus, says, "By diversifying the Company’s platform into printed and digital media business, we will create synergy with our existing core business of film production and distribution by providing an additional solid marketing channel in China. That will also give Pegasus a high degree of control on the marketing campaign of our productions and to further expand our potential audiences to the high-end consumer market of China. Since the Target Company has extensive experience in the provision of film advertising and promotion services, we believe this acquisition will allow us to develop a professional in-house advertising and promotion team, which will benefit Pegasus in terms of providing flexibility to formulate and fine-tune our advertising and promotion strategies. This is an important step towards our expansion into a diversified cultural business."
About Pegasus Entertainment Holdings Limited
Pegasus Entertainment Holdings Limited, as a diversified cultural business group, is principally engaged in the business of films and television series production, distribution, licensing of film rights, film exhibition and post-production.
According to its corporate website, UnionPay, which is headquartered in China, has about 400 associate members worldwide, with its cards accepted in 150 countries and regions outside China. UnionPay has issued over 4.6 billion bank cards globally. According to its transaction data released in January 2015, UnionPay’s global network processed transactions with a total volume of RMB41 trillion in 2014, representing a year-on-year increase of 27.3%.
For further details, please refer to the announcement on HKEX website: