Film production and distribution company mm2 Asia will pay Village Cinemas Australia over SG$184 million, for its entire stock (amounted to be 50%) in Dartina, a company which operates GV Cinema business in Singapore. The acquisition is expected to be completed by 21 July 2017.
This announcement comes shortly after mm2 Asia had unveiled plans for the deal in May 2017.
According to the press statement, the acquisition is a “strategic investment” in line with mm2’s overall strategy to “further strengthen its presence in the downstream value chain of film distribution”. The company believes the deal “complements its current cinema operations in Malaysia and provide a source of recurring income “.
Prior to its latest acquisition, mm2 Asia acquired the cinema management and operations business of Lotus Fivestar Cinemas in 2016 for 13 cinema locations for a purchase consideration of RM118 million. In 2015, the company also completed the acquisition of Cathay Cineplexes business operations at two locations in Malaysia for RM40 million (SG$13.8 million). The acquisition was done through the company’s wholly owned subsidiary, mm2 Screen Management.
The group’s indirect subsidiary UnUsUaL also unveiled plans earlier this year to invest in promotions as well as production projects, through the use of the estimated SG$17.4million net proceeds from its initial IPO.