China 3D Digital Entertainment buys HMV Asia

HMV Asia, the movie and music specialist turned lifestyle retailer, is heading for the mainland.

The first new store is expected to be opened in Shenzhen following the acquisition of a majority stake in the company by film maker China 3D Digital Entertainment.

China 3D paid private equity investor AID Partners Capital HK$408 million for an 81.63 per cent controlling interest in HMV Asia, the balance of which was a week ago acquired by a Japanese fund. AID bought the business in Hong Kong and Singapore from the British parent when it went into administration in 2013.

HMV new 2

China 3D will issue 1.12 billion shares to AID Partners, representing 22.59 per cent of the company, which will be renamed HMV Digital China Group.

In an interview with the South China Morning Post, AID Partners chairman Kelvin Wu King-shiu said he believed HMV had a strong future in the mainland as the retail concept was no longer focused on CDs and DVDs.

“We have become a lifestyle brand. We also sell technology products, coffee, wine and meals as well as providing live performances,” he said. “It is not a retail shop but a lifestyle shop for young people to get together to enjoy life.”

The brand’s 40,000 sqft Causeway Bay flagship store which opened last November houses a cafe, a live performance venue, sells movie and music memorabilia and lifestyle products.

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