Imagi to buy Toon Express for HK$814 million

Imagi International Holdings Limited announced its intent to buy Toon Express Group, commercial agent of a popular Chinese animation Pleasant Goat and Big Big Wolf for HK$814 million ($104 million) last Friday.

IMAGI will settle an initial consideration of HK$814 million by way of cash payment of HK$330 million ($42 million), and the remainder by the issuance of 1.38 billion consideration shares at HK$0.35 ($0.04)apiece.

Liu Manyi, general manager of Creative Power Entertaining (CPE), owner of "Pleasant Goat and Big Big Wolf", said the move can help the animation go international.

Toon Express has developed a strong recognition of its cartoon characters, in particular Pleasant Goat and Big Big Wolf. The Chinese-made cartoon launched in January 2009, had a good performance in the country. The box office of the latest animated film has reached 150 million yuan ($$22.8 millon).

Toon Express has key commercial agreements with two contractual partners, Creative Power Entertaining LLC (CPE) and Disney Enterprises, Inc (Disney).