mm2 Asia acquires two Cathay cinemas for RM40 million
Writer: Florey DM
One of the Cathay cinemas to be acquired by mm2 Asia.
20 Aug – Singapore production company mm2 Asia has announced on its Facebook that its wholly-owned Malaysian subsidiary, MM2 Screen Management Sdn Bhd, has entered into a sale and purchase agreement (SPA) with Cathay Cineplexes Sdn Bhd.
The SPA is to acquire Cathay's two business operations, which are Cathay Cineplex Damansara, located at e@Curve in Petaling Jaya, Selangor, and Cathay Cineplex City Square located at Johor Bahru City Square, Johor, for a total of RM40 million.
Cathay Cineplex City Square, which opened in 2000, currently has 14 screens and a seating capacity of 2,826. Cathay Cineplex Damansara, opened in 2006, is the largest multiplex in Petaling Jaya with its 16 screens and seating capacity of 2,472.
The completion of the acquisition is expected to be on or before 30 September 2015.
mm2 Asia had made its debut on the Singapore Exchange Securities Trading Limited in 2014, making it the first Singapore movie production company to do so.
It has since produced movies such as Jack Neo's "Ah Boys to Men" franchise and the recent SG50 film, "1965". As a distributor, some of the titles it has distributed include Malaysia's "The Journey" and "The Cage".
Other than Cathay cinemas, Malaysia also has several other cinemas. Let's take a look at the ownership of these cinemas:
Golden Screen Cinemas (GSC)
GSC is a wholly-owned subsidiary of an investment holding company, PPB Group Berhad (a member of the Robert Kuok Group). It has a total of 32 locations nationwide.
TGV Cinemas Sdn Bhd (TGV Cinemas)
Wholly-owned by Tanjong PLC, TGV Cinemas has 30 multiplexes nationwide to date. It also holds the licensing rights for the IMAX theatres in the country.
In the year 2012, private equity fund Navis Capital Partners had acquired MBO Cinemas (MCAT Box Office Sdn. Bhd.), which then also acquired nine BIG Cinemas locations in 2013, rebranding them all under the MBO Cinemas brand. There are currently 26 locations nationwide.
Lotus Five Star Cinemas (LFS Cinemas)
LFS Cinemas is owned by the Lotus Group, which first started out with their own chain of restaurants before venturing into the cinema business. It has a total of 25 locations nationwide.
Cinema Online, 20 August 2015