Jakks Pacific has sold $1.93 million worth of shares to Hong Kong Meisheng Culture Company Ltd.
The transaction – the sale of 3,660,891 shares of the Company’s common stock to Meisheng – is currently subject to approval by the shareholders of Meisheng’s parent company and regulatory filings in China.
The move is an firm indication of Jakks’ plans for global expansion, particularly within the Chinese market.
“As a manufacturer of kids’ consumer products and toys, as well as a producer of animated content, we appreciate the significant and broad possible new opportunities the Chinese market represents,” said Stephen Berman, Jakks chairman and chief executive officer.
“We are pleased that Meisheng has made the investment decision to acquire an equity stake in Jakks. This should fortify our existing relationship as joint venture partners in two jointly owned companies – one that distributes Jakks products in China and the other that develops new animation content owned by Jakks and Meisheng.
“We expect the expanded relationship with Meisheng will put us in an advantageous position to realise greater opportunities in China.”
As part of the new deal, executive director of Hong Kong Meisheng Culture Company Ltd and chairman of the board of its parent company Meisheng Culture and Creative Corp, Xiaoqiang Zhao, will join as a member of Jakks’ board of directors.
“He will bring his experience and unique insights to the board including serving as chair of a specially created committee aimed at commercial development in the Greater China region, and will be instrumental in helping us gain greater access to the Chinese toy market,” added Berman.
Zhao commented: “I am honoured to be elected as a new member of Jakks’ board of directors. I look forward to bringing my decades of experience in consumer goods to the Board and to further support Jakks’ growth along with the other members of the board.”