Riche Multi-Media shares jump on news of Macau site acquisition

Shares in Riche Multi-Media Holdings, a film distributor turned Macau play controlled by producer Charles Heung Wah-keung, soared 12.68 per cent in brief trading yesterday after the company said it would acquire a site in Macau.

Riche will pay HK$684 million to purchase a 50 per cent stake in a piece of prime land along the enclave's historic Praia Grande from Tiffany Chen Ming-yin, an executive director of the firm and the wife of Mr Heung.

Ms Chen retains a 25 per cent interest in the 50,000-square-foot site, situated in the Nam Van Lakes district on Dr Stanley Ho Avenue, with the remaining 25 per cent stake held by an unnamed third party.

The land grant from the Macau government allows for a developable gross floor area of 637,000 square feet of residential space. Ms Chen acquired her 75 per cent stake in the land in the past two months via British Virgin Islands-registered Modern Vision for HK$1.026 billion, Riche said in a stock exchange filing.

The company said the purchase would be funded by cash and third-party financing. News of the deal pushed Riche shares to 80 HK cents from 71 HK cents after the market opened yesterday but trading lasted just 35 minutes before it was suspended for an announcement regarding a new share placement.

Citing rampant film piracy in the mainland, Riche in recent months has pulled back from its traditional film distribution business in favour of seeking new investment opportunities in Macau.