StarHub has agreed to subscribe to 26.3 million of mm2 Asia’s new ordinary shares for SG$15 million. Following the completion of the proposed subscription, StarHub will hold 114.3 million mm2 shares, representing approximately 9.8% of the enlarged share capital.
According to StarHub’s statement on the Singapore Exchange, the proposed subscription is a “strategic investment” that affirms its position as the single largest corporate shareholder of mm2. StarHub said it will continue to strengthen collaborative efforts with mm2 to expand and differentiate its content offerings, leverage on mm2’s regional footprint and identify growth opportunities in the market.
Completion of the proposed subscription is pending shareholder approval. In a statement to Marketing, Starhub’s spokesperson said this investment will not affect its business operations or marketing initiatives.
“Since taking a stake in [mm2] 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,” Tan Tong Hai (pictured), CEO of StarHub, said.
Marketing has reached out to StarHub and mm2 Asia for more details.
Earlier this month, mm2 Asia acquired a stake in the GV business for over SG$184 million to “further strengthen its presence in the downstream value chain of film distribution”. Prior to the acquisition, mm2 Asia also acquired the cinema management and operations business of Lotus Fivestar Cinemas in 2016 for 13 cinema locations for a purchase consideration of RM118 million.
The company also completed the acquisition of Cathay Cineplexes business operations at two locations in Malaysia for RM40 million (SG$13.8 million) in 2015. The acquisition was done through the company’s wholly owned subsidiary, mm2 Screen Management. mm2 Asia’s indirect subsidiary UnUsUaL also unveiled plans in April 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.