mm2 Asia eyes acquiring 50% stake in Golden Village

Total consideration sits at $184.3m.

Singapore-listed film production and distribution firm mm2 Asia is proposing to acquire 50% stake in Golden Village cinema business in Singapore for about $184.3m.

According to DBS Group Research, the proposed acquisition will be funded by a combination of bank borrowings, internal cash resources as well as proceeds from fund raising exercises to be undertaken by the group. The acquisition is expected to be completed by July 21.

Golden Village is Singapore's leading cinema exhibitor with 11 multiplexes housing 92 screens with locations in various parts of Singapore. Total capacity is 1,390 seats, consisting of 8 auditoriums and 3 Gold Class cinemas. Other cinema operators in Singapore include Shaw, Cathay and WE cinema by Eng Wah. Shaw has about eight cinemas, Cathay seven and WE, one.

"The proposed acquisition of the GV cinema would further strengthen mm2’s presence in the downstream value chain of film distribution. As the market leader, mm2 would now have a better bargaining power in terms of securing distribution titles and screening rights. This will also complement its current cinema operations in Malaysia," the brokerage firm said, noting that cinema operation is a relatively stable and cash business.