mm2 Asia's deal with Kingsmead Properties for sale of cinema business falls through
THE sale and purchase agreement between mm2 Asia 1B0 : 1B0 0%and local investment firm Kingsmead Properties for the former's cinema business has fallen through, the entertainment company announced on Monday (Jan 3).
Kingsmead has chosen to exercise its exchange right, and will instead exchange its deposit of S$6 million into 75 million newly issued mm2 shares at a share price of S$0.08 per share.
Shares of mm2 Asia last closed S$0.001 or 1.9 per cent lower at S$0.051 on Dec 31.
mm2 Asia - which operates cinemas under the Cathay brand - previously announced that it had inked a deal with Kingsmead to sell its cinema business for S$84.8 million. The proposed sale was to be completed by Dec 31.
However, Kingsmead said uncertainty surrounding the Omicron variant has dampened investor appetite "for the moment", though it acknowledged that the cinema business in Singapore and worldwide has shown a strong turnaround in recent months.
"We hope to be able to revisit the acquisition again, and hopefully soon enough, when the Covid situation further eases," it said.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Melvin Ang, mm2 Asia's founder and executive chairman, said the company welcomes Kingsmead as a valuable strategic shareholder and will welcome any new proposal from the investment firm in the future.
"The Omicron effect on investing sentiment was sharp and unexpected. However, mm2 remains optimistic about the recovery of the cinema business as signs are indicating a trend towards recovery," he added.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Westpac net profit falls 16%, announces additional A$1 billion buyback
Worst days for China’s stock market may be over
Emerging-market optimism dashed by Fed as currencies, bonds sink
LHN warns H1 2024 net profit could decline by 28.6%
It is time to put idle cash back into the market
Gauging sentiment is crucial, and there are hard and easy ways to do it