mm2 Asia to acquire two Cathay cineplex businesses in Malaysia

Melvin Ang, chief executive officer of mm2 Asia.
Melvin Ang, chief executive officer of mm2 Asia. PHOTO: MM2 ASIA

SINGAPORE - Catalist-listed entertainment group mm2 Asia said on Monday (Aug 17) that it has signed a deal with Cathay Cineplexes Sdn Bhd to acquire its business operations at two locations in Malaysia for RM40 million (S$13.8 million).

The two locations are Cathay Cineplex Damansara at e@Curve in Petaling Jaya, Selangor, and Cathay Cineplex City Square at Johor Bahru City Square.

The acquisition is expected to be completed by Sept 30, 2015.

Cathay Cineplex Damansara holds 16 screens with 2,472 seats in total and is currently the largest multiplex in Petaling Jaya, while Cathay Cineplex City Square holds 14 screens with 2,826 seats in total and is the largest multiplex outside the Klang Valley region.

The company said the acquisition is in line with the company's intention to diversify and expand into business opportunities along the value chain of film production.

"The company believes this will complement its current and future businesses, strengthen its competitive advantage through the ownership of cinemas, as well as provide a source of recurring income to the group," it said.

The company is funding the acquisition through its internal resources and the proceeds of recently completed fund-raising activities.

On a pro forma basis, it will raise the company's full-year net profit attributable to shareholders from $5.08 million to $5.96 million, and its earnings per share from 2.46 cents to to 2.88 cents.