MM2 Asia eyes IPO options while signing with Kingsmead

Date Posted: 13 August 2021

The cinema industry has been severely impacted by the pandemic
The cinema industry has been severely impacted by the pandemic

13 Aug – Despite having signed an agreement to sell at least 80 percent of MM Connect to Kingsmead Properties, Singapore's MM2 Asia revealed that it will continue to look at spin-off IPO of its cinema business.

Two weeks after signing with the privately-owned investment firm, MM2 stated that it will continue working towards an IPO and go ahead if the Kingsmead bid fails or not completed before then.

If such a case occurred, the said firm would be able to convert its deposit of SGD 3 million into shares of the unit at a discounted price.

It is noted that the Cathay Cineplexes' parent company were among theatrical film companies that have been badly affected by the COVID-19 pandemic, with Singapore allowing theatres to operate only under strict conditions.

These conditions include allowing for only 100 people capacity with pre-event testing, and 50 without testing. Food and drinks are also not allowed to be served.

The situation has triggered a huge loss to MM2, with its liabilities exceeding assets by SGD120 million.

Writer: Heidi Hsia

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