IoM Profits From Film Finance Investment
by Jason Gorringe, Lowtax.net, London
08 April, 2015
The Isle of Man Government has announced that it has sold about half of its shares in Pinewood Group, a film studio, at a mark-up of 50 percent.
In 2012, the Isle of Man Government reached an agreement with UK-based Pinewood Shepperton plc to source and advise on film investment opportunities for its Media Development Fund for an initial term of five years. As part of the arrangement, the Isle of Man Government acquired a stake in Pinewood Shepperton plc as a strategic investment.
The Government said that it had generated a net profit of about GBP2.5m (USD3.73m) from the investment, after the sale of its shares on March 31. The sale yielded a total return of GBP7.6m and reduced the Government's holding in Pinewood from 9.9 percent to 4.99 percent. The remaining holding is valued at around GBP10.7m.
Treasury Minister Eddie Teare said: "Pinewood has been raising capital for the expansion of its studios and this has presented us with an opportunity to realize the value of some of our shareholding in the Group. Fifty per cent is a nice return on an investment so this is very good news for the Government and public of the Isle of Man."
The Isle of Man has been active in film and television production since 1995, generating significant economic benefits for the island. The nation's approach to the film industry has been unique in that the island has supported productions through financing, rather than state subsidy, due mainly to the island's already benign tax environment.
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