Telco StarHub is expanding its pay TV offerings by taking a stake in content producer mm2 Asia.
The firm has acquired a 9.05 per cent interest in the Catalist- listed company for $18 million or 41 cents a share via a share placement exercise, it announced yesterday.
"Taking a stake in mm2 is a strategic move. It unlocks opportunities to expand our pay TV offerings through original content creation that will set us apart in the cluttered content space," said StarHub chief executive Tan Tong Hai in a statement.
The purchase price works out to a discount of 19.2 per cent to mm2 Asia's volume weighted average price of 50.77 cents yesterday.
StarHub has been partnering mm2 Asia since 2012 through investments in the Ah Boys To Men and Lion Men movie series, which were co-produced by mm2 Asia.
The two companies are working together on Hear Me Sing, an online Chinese singing competition to be launched next month.
StarHub noted yesterday that it could extend the reach of its localised content through marketing and distribution efforts beyond Singapore.
Mr Tan added: "In addition, we may choose to tap mm2's cineplex business to showcase our content, as well as gain access to top-rated concerts and artists through UnUsUaL, of which mm2 owns a stake."
Last month, mm2 Asia announced that it will acquire a 51 per cent stake in the UnUsUaL group of companies, one of Asia's largest promoters and organisers of shows and entertainment acts, for up to $26 million.
"We're confident StarHub will play an important role in mm2's progress to forge a greater regional presence in the media industry," said mm2 Asia chief executive Melvin Ang in the statement.
The deal is expected to be completed in May.