mm2 Asia presses pause on listing of cinema business operating under Cathay brand

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Entertainment group mm2 Asia is pressing pause on the spin-off and listing of its cinema business on the Catalist board of the Singapore Exchange (SGX) as it does not comply with chain listing requirements. According to an SGX filing, mm2 Asia had sought SGX's pre-clearance on certain issues relating to the proposed spin-off.

One of the issues clarified relates to the chain listing requirement under Listing Rule 210(6) which states that approval will not normally be given for the listing of a subsidiary of a listed issuer if the assets and operations of that subsidiary are substantially the same as that of the listed issuer. Mm2 Asia has since been advised that the proposed spin-off does not comply with the chain listing requirement under the rule.

Based on this, mm2 Asia will halt plans to spin-off and list its cinema business and instead look to continue to develop its businesses and, if appropriate, will revisit the IPO process in future including seeking SGX's pre-clearance for the spin-off at a later date. Meanwhile, mm2 Asia will continue to explore other avenues to maximise shareholder value.

On 10 August, mm2 Asia said it would list its cinema business on the Catalist board. Its cinema business operates under the Cathay brand and this listing will be done alongside Cathay's sale, The Straits Times reported. Later that month, mm2 Asia said it is selling its cinema business to local investment firm Kingsmead Properties for SG$84.8 million.

According to mm2 Asia's founder and executive chairman, Melvin An, the cinema business has been a strategic part of mm2 Asia's content creation and distribution business. The proposed sale will stabilise the group's financial situation and allow the company to focus on its core business of movie production and content creation.

Photo courtesy: 123RF

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