Thats one subsidary which I didnt know about.. Vue Networks. Creative Technology Ltd (“Creative”) on 15th Oct 2010 announced that its wholly owned subsidiary, Vue Networks Pte Ltd (“Vue Networks”) has entered into an agreement to issue 1,999,998 new ordinary shares for a cash consideration of S$1,999,998. A new investor, Mega Media Holdings Pte Ltd (“MM”) will subscribe for 1,000,000 shares at S$1 each while Creative will subscribe for the remaining 999,998 shares at S$1 each.
Following the issuance of new shares which is expected to take place by the end of October 2010, the issued and paid up capital of Vue Networks will increase to S$2 million and Creative’s interest in Vue Networks will reduce to 50%. Consequently, Vue Networks will cease to be a subsidiary and will become an associated company of Creative.
Vue Networks is involved in the production, procurement and management of digital media content including the provision of technical development services for digital entertainment devices while MM group’s core businesses comprise TV & film media content production, aggregation and distribution. This transaction presents an opportunity for both parties to work together in the production and technical development of digital media content as well as the opportunity to grow the business through the enhancement of media content, product and service offerings. The cash proceeds from the issuance of the new shares are intended to provide additional working capital for the company.
Creative will fund the subscription of new shares in Vue Networks through internal resources and this transaction is not expected to have any material impact on the financial position of the Creative Group for the current financial year.
None of the Directors or controller shareholders of Creative has any interest, direct or indirect, in the above transaction.
Ng Keh Long
15 October 2010
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