Hong Kong's Star East Boosts Holdings in Revived Planet Hollywood

ORLANDO-After emerging from Chapter 11 protection under the US Bankruptcy Code earlier this year, locally-based Planet Hollywood International Inc. continues to draw interest from investors, especially its long time backer, Star East Holdings Ltd. The Hong Kong-based entertainment company has increased its stake in the celebrity-oriented restaurant chain to 18% with the purchase of 275,000 shares for $3 million.

Star East’s move follows an earlier first-quarter shares purchase that raised its ownership interest to 14.3%. That move, like the current filing with the Securities and Exchange Commission, didn’t surprise industry watchers since Star East is Planet Hollywood’s franchise operator of record in Asia. The two firms are a mutual admiration society with Planet currently owning 6% of Star East stock.

Star East buys shares through Magnetic Light Profits, a wholly-owned subsidiary based in the British Virgin Islands. Star East and other investors in Planet Hollywood dole out limited numbers of class B stock to selected entertainment industry celebrities in exchange for their appearances at restaurant openings and special events promoted by the restaurant company.