MAINBOARD-LISTED mm2 Asia : 1B0 0% has subscribed for HK$19 million (S$3.3 million) of exchangeable bonds issued by Hong Kong concert organiser Unipact Entertainment and Productions to enhance its live entertainment presence in Asia.

On Wednesday (Sep 6), the Singapore-based entertainment group said its wholly owned subsidiary mmLive signed the subscription agreement with Unipact, where the bonds will be exchanged into 5 per cent of the total number of Unipact shares.

The exchange bonds bear a simple interest rate of 3 per cent per annum, and will continue to be due until 36 months after the bond issue date, or an extended maturity date after 72 months.

The first interest payment will be due six months from the issue date, the group said.

The consideration of an aggregate HK$19 million factors in an estimated valuation of Unipact of HK$380 million, as well as the potential returns on the exchangeable bonds.

It will be funded by the group’s internal resources and paid by mmLive in cash via three separate transactions of HK$1.9 million before Oct 8, HK$7.6 million before Oct 31, and HK$9.5 million before Nov 10.

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The company also noted that the Unipact investment is not expected to have any material impact on its consolidated net tangible assets or earnings per share for the financial year ending Mar 31, 2024.

Executive chairman Melvin Ang said they have witnessed an “incredible demand” for live events in Asia.

Ang added that the investment helps to integrate resources to grow the group’s presence across markets such as China and South-east Asia.

The exercise has been facilitated by UOB Kay Hian and Haitong International Securities, with Hildrics Capital as the early anchor investor and strategic business partner of mmLive.

In February this year, mm2 Asia incorporated its concert arm in Asia, mmLive, and signed a non-binding letter of intent to subscribe for bonds exchangeable into shares in Unipact.

It also owns 51 per cent of UnUsUaL Management, which holds 76.9 per cent of Catalist-listed UnUsUaL.

Over the past year, UnUsUaL has emerged as a major player in the concert scene in Singapore and Malaysia, bringing in top billed stars such as Jackie Cheung, Aaron Kwok, and JJ Lin.

Shares of mm2 Asia were trading flat at S$0.04 as at 9.05 am on Thursday.