HRC World takes stake in Yong Tai's Encore Melaka company

KUALA LUMPUR: HRC World Plc will take a stategic stake in Yong Tai Bhd's unit PTS Impression Sdn Bhd which is involved in the development of the tourism stage performance Encore Melaka.

Yong Tai, which is a tourism and cultural related property developer, said on Tuesday PTSI had inked an MoU with HRC Music Plc –  a subsidiary of HRC World – to formalise their intention and understanding in relation to the proposed investment by HRC World in PTSI.

Under the MoU, HRC Music will subscribe up to 70% stake in PTSI at a subscription price to be determined later. 

HRC World is listed on Nasdaq First North in Copenhagen where it has served as an important growth platform, enabling Nordic and international entrepreneurs to access growth capital to develop and expand their businesses. 

HRC World's core activities are providing strategic restaurant management services for restaurant chains across China and other parts of Asia as well as audio-visual content development, management and consultancy services.

Both parties have mutually agreed to negotiate in good faith the details terms and conditions of the proposal with intention to finalise and enter into the relevant definitive agreements within 60 days from the date of the MoU or such other longer period as the parties may mutually agree upon.

Yong Tai CEO Datuk Wira Boo Kuang Loon said HRC World's stake in PTSI demonstrated the latter’s commitment and confidence in Encore Melaka theatre.  

“Yong Tai sees the synergistic value from HRC World to jointly operate Encore Melaka theatre as HRC World manages well-known music-centric, themed food and beverage cafes across China and other parts of Asia that strategically promotes live music and bands.

“Their participation would definitely boost Encore Melaka theatre profile across China and other parts of Asia,” he added. 

Boo also said the subscription price would not be less than book value of Encore Melaka theatre.

The corporate exercise would enable it to unlock the value of its investment in this iconic theatre. 

Encore Melaka is the first international standard indoor theatre in Malaysia with a 360-degree rotating auditorium with a total capacity of approximately 2,000 seats.  It is a franchise and the 10thImpression Series and first outside of China, which is a hit among tourists.

The show is the story of Melaka brought to life by approximately 200 local talented performers in colourful period costumes, exuberant stage settings and spectacular lighting and audio effects.

The theatre is  within the Impression City development, a RM7bil gross development value cultural tourism properties development in Melaka which will be developed in stages on a 138-acre parcel of land. 

Over a longer term, Yong Tai being the master developer of Impression City development will benefit from the value created by Encore Melaka theatre collaboration with HRC World.