Golden Village owner considers US$400 million sale of cinema chain

SINGAPORE: Hong Kong-based Orange Sky Golden Harvest Entertainment Holdings, the owner of the Golden Village movie theater chain in Singapore, is contemplating the sale of its cinema assets in both Singapore and Taiwan, aiming for a valuation of at least US$400 million, sources familiar with the matter revealed.

According to insiders who spoke to Bloomberg, the company, listed on the Hong Kong stock exchange, is actively exploring the possibility of divesting its movie theaters in these regions.

Advisors have been engaged to facilitate the potential sale, and Orange Sky Golden Harvest has begun reaching out to potential investors.

The decision to also offload cinemas in Hong Kong hinges on the response from interested parties.

While various cinema operators and investment firms have expressed initial interest, these discussions remain in the preliminary stage, caution the sources, who requested anonymity due to the sensitive nature of the information.

Bloomberg reported that Orange Sky Golden Harvest retains the option to retract from any potential deal.

Following the Bloomberg story, Orange Sky Golden Harvest witnessed a significant surge in its stock price, soaring as much as 23% on Thursday. This spike propelled the stock to its highest level since October, with a closing increase of 7.7%, thereby valuing the company at approximately HK$115 million.

Founded in 1970 as Golden Harvest by Hong Kong filmmakers Raymond Chow, Leonard Ho, and Leung Fung, the movie studio underwent a transformation when businessman Wu Kebo emerged as the largest shareholder in 2007.

Subsequently, the company was rebranded as Orange Sky Golden Harvest. Renowned for its involvement in film production, financing, and distribution, the company has been instrumental in producing some of Hong Kong’s most iconic movies, including classics starring Bruce Lee and Jackie Chan.

Singapore has emerged as a key revenue contributor for Orange Sky Golden Harvest, accounting for nearly half of its revenue of HK$396 million in the first half of 2023, as per its latest financial report.

Operating under the Golden Village brand, the company currently operates 15 cinemas with 119 screens in the city-state.

Meanwhile, in Taiwan, the company boasts 17 cinemas with 182 screens. In Hong Kong, Orange Sky Golden Harvest operates 10 movie theatres with 37 screens, further enhancing its presence in the region’s entertainment landscape.