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mm2: Seller responsible for obtaining approval that held back Golden Village deal
mm2 Asia says that its counterparty in a planned investment in the Golden Village cinema business in Singapore was responsible for fulfilling a condition that has prevented the deal from being completed.
mm2, a movie and TV production company, said on Monday before the market opened that its planned acquisition of a 50 per cent share in Golden Village has not taken place because approval for the deal had not been obtained from the owner of the remaining stake in the cinema chain.
mm2 Asia had announced on June 13 that it was in talks with Village Cinemas Australia for Village Cinemas' entire 50 per cent stake in Dartina Development, which holds the Golden Village cinema business in Singapore.
One of the conditions of the deal was that Golden Screen, the entity that holds the remaining 50 per cent in Dartina, had to approve mm2 by July 21 in accordance with an existing agreement between Golden Screen and Village Cinemas. That approval was not obtained, and the acquisition therefore did not take place.
William Lau, executive adviser to mm2's chairman, told The Business Times on Monday that getting the approval was the responsibility of Village Cinemas since mm2 is not party to the agreement between the two shareholders of Golden Village. Otherwise, mm2 stood ready to complete the deal.
The movie and TV production company said it is exploring its options.