HONG KONG (AP) — A Hollywood-China movie production venture that plans to make big budget films for worldwide audiences has been cleared for an infusion of $220.5 million from an unlikely source — a construction company.
Shareholders of Hong Kong’s Paul Y. Engineering Ltd. on Tuesday approved the investment in the joint venture that is also aimed at China’s increasingly lucrative film market.
The construction firm, which says it wants to diversify and thinks the movie industry has strong growth potential, is taking a 50 percent stake in the production company, Legendary East Ltd., in exchange for the investment.
“Diversification into some unremarkable business is totally useless. Profit margin would be low, risk high,” Paul Y. Chairman James Chiu said. “We decided to seek an innovative growth avenue.”
After the deal, Hollywood production house Legendary
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