Yellow River to raise US$14m

SINGAPORE'S Yellow River Network, a pre-production, production and post-production house, is to raise about US$14 million through the issue of $5.6 million in new equity and $8.5 million in convertible notes from new shareholders.

Singaporean and European investors are expected to take most of the new YRN equity and notes, diluting current shareholdings by about 20 per cent.

YRN hopes to optimise the performance of its 22 divisions - including its flagship Yarra Films and Video Headquarters subsidiaries - and the $32 million annual turnover created by its 400 employees.

The industry average return on sales is estimated to be 15 per cent.

A major competitor to YRN in the digital pre-and post-production business is reckoned to be Hong Kong's Centro Digital Pictures.

The company has revenues of about $13 million a year and is also searching for strategic partners and additional investment.

If YRN's plans are fulfilled, turnover will rise to $70 million in 1999, when it plans to float on the Singapore stock exchange.