Sidley is advising Transmit Entertainment Limited (SEHK:1326) (Transmit Entertainment) on its VIE agreements announced on May 27, 2018. In this transaction, Guangzhou Huohua Investment Company Limited (Guangzhou Huohua), a wholly-owned subsidiary of Transmit Entertainment, entered into VIE agreements with Khorgas Houhai Culture Media Company Limited (Khorgas Houhai), the P.R.C. Special Purpose Vehicle (SPV) and the ultimate shareholders of the SPV. The cash consideration of the transaction is RMB450 million. Upon completion of the agreements, Guangzhou Huohua will have effective control over the finance and operation of the SPV and Khorgas Houhai, and will enjoy the entire economic interests and benefits generated by the SPV and Khorgas Houhai.
Transmit Entertainment is a Hong Kong-listed company principally engaged in the production and distribution of films and television dramas. Khorgas Houhai is a China-based company specializing in radio and television program production and operations.
The Hong Kong-based Sidley team was led by partners Constance Choy and Christopher Cheng, with support from legal manager Emily Wang.