Japan-based, Growth Enterprise Market-listed music production house Rojam Entertainment Holdings is expanding its entertainment business by acquiring a music-licensing firm and a disco. Rojam shareholders yesterday gave the go-ahead for the acquisition of an 80 per cent stake in Japan's R&C, which specialises in master-tape rights licensing, for HK$67.5 million. To settle the purchase, Rojam will issue 28.94 per cent new shares to R&C's parent Yoshimoto Kogyo, an entertainment conglomerate listed in Tokyo and Osaka. The issue will dilute the holding of chairman Tetsuya Komuro, a renowned pop-music producer, to 30.41 per cent from 42.8 per cent. Rojam chief executive Tetsuo Mori said the deal was worth striking. 'It will enable us to complete the entire music industry value chain and bring us closer to fulfilling our aim of becoming Asia's leading music content provider.' R&C, which made a net profit of HK$2.72 million in the last financial year, will pay royalty fees to Rojam for the rights to distribute its music products. Mr Mori said introducing Yoshimoto as a strategic investor could allow Rojam to leverage on its network to attract more music talent in Japan. Yoshimoto is engaged in the planning, production and sale of television, radio and live entertainment programmes. It also manages celebrities such as artists, actors and athletes. Meanwhile, Mr Mori said Rojam expected its acquisition of a controlling stake in a Shanghai disco to be completed by the end of the year. Rojam will buy a 90 per cent stake in the disco for HK$31.5 million. Mr Mori said the company would use the disco as a platform to promote its trance and techno party music. 'It can be used for testing the popularity of different genres of music and new songs,' he said. To increase revenue, it would use the premises during the day to recruit and train artists.