SHAW BROTHERS (00953) plans to issue 45.765 billion yuan worth of shares to acquire all the shares of CMC Moon Holdings Limited.

SHAW BROTHERS (00953) announced that on January 21, 2026, the company plans to acquire all issued shares of CMC Moon Holdings Limited from its major shareholder, CMC, at a purchase price of RMB 4.5765 billion. The company will pay for the acquisition by issuing and distributing consideration shares to HoldCo and other designated recipients at a share price of HKD 0.320 per share (totaling approximately 15.93 billion shares, representing approximately 91.82% of the enlarged share capital), with a discount of approximately 15.8% compared to the closing price of HKD 0.380 per share on the last trading day on the Stock Exchange. As of the date of this announcement, the target company is a direct wholly-owned subsidiary of HoldCo, which will become an investment holding company of the target business after the restructuring is completed. The target business includes (i) the development, production, investment, and distribution of films, TV series, and non-drama content in Mainland China and overseas markets; and (ii) the operation of over 50 cinemas in Mainland China under the UME brand and cinema line of business. The announcement states that through the acquisition of the target business, which has a wealth of talent, strong production capabilities, diversified content portfolio, and rich intellectual property reserves, the acquisition is expected to significantly enhance and expand the group's existing content capabilities and audience base, thus achieving more sustainable long-term growth. The acquisition will also enable the group to establish a more resilient content business model, transitioning from a single-brand studio (with limited focused genres) to a network of multiple studios, with a larger and more diversified content portfolio covering various genres and stronger production capabilities. The significant increase in production capacity brought about by the acquisition is also expected to create meaningful synergies for the group's artist and event management business, providing talented artists with broader performing opportunities in the Mainland China market. Furthermore, as the acquisition involves the acquisition of cinema business, it provides vertical expansion opportunities for the group's film business and allows the group to tap into a global film distribution and marketing network to distribute Chinese-language films to various countries and cities worldwide.