StarHub to subscribe for $15 million mm2 Asia shares in placement

SINGAPORE - StarHub is forking out S$15 million to subscribe for 26.3 million placement shares of mm2 Asia, the Catalist-listed movie, TV and online content-production company.

Upon completion of the placement, StarHub will hold 114.3 million mm2 shares, or about 9.83 per cent of its enlarged share capital.

The placement for each share was 57 Singapore cents, StarHub said in a statement to the Singapore Exchange late on June 29.

Shares of mm2 Asia ended at 54.5 Singapore cents while StarHub shares last traded at S$2.76.

Mr Tan Tong Hai, chief executive of StarHub, said he was happy to strengthen the strategic partnership with mm2.

"Since taking a stake in the company a year ago, we have seen it grow its revenue and profit by more than two-folds. mm2's strength in original content productions, concert productions and their potential investment in Golden Village cinemas complements our Hub plus strategy - to provide digital lifestyle and connectivity services for our customers," Mr Tan said.

StarHub remains mm2's single largest corporate shareholder, and will work closer together with mm2 to identify growth opportunities in the market, he added.