mm2 Asia unit acquires nearly 20% stake in Hong Kong cinema management company

SINGAPORE - A unit of TV and online content producer mm2 Asia has agreed to acquire a 19.68 per cent stake in Cinema Pro, a Hong Kong cinema management company for HK$4 million (S$720,000), giving the Catalist-listed company a foothold into North Asia's cinema industry.

In a release issued on Wednesday, mm2 Asia said its wholly owned subsidiary mm2 Entertainment has entered into a binding memorandum of understanding with the Hong Kong firm to purchase 3.2 million new shares of Cinema Pro at HK$1.25 each.

The collaboration will bring together Singapore movie producer mm2 Entertainment with cinema veteran Chan Chi Leung, and the strong support of Kbro Media Co. Ltd to target cinema projects in Asia.

Taiwan's Kbro Media is the majority owner of Cinema Pro, and is in turn a subsidiary of Taiwanese conglomerate Fubon Group that has over US$190.8 billion in assets.

"The recent increase in the number of malls in key markets across Asia has created unprecedented collaboration opportunities between mall owners and professional cinema management operators," said Hock Ong, chief executive officer of the mm2 group's cinema business.