mm2 Asia acquires two cinemas in Malaysia from Cathay Cineplexes

SINGAPORE-BASED mm2 Asia completed the acquisition of two cinemas in Malaysia from Cathay Cineplexes for RM40 million (S$13.1 million) on Nov 1.

The two cinemas - Cathay Cineplex Damansara in Kuala Lumpur, and Cathay Cineplex City Square in Johor Bahru - have a combined total of 30 screens and 5,298 seats.

mm2 Asia chief executive Melvin Ang said: "We believe there is scope to further enrich the whole movie theatre experience; from the seats, sound, location and breadth of food and beverages. With the completion of the acquisition of the two cinemas, it will provide a source of recurring income and future growth for the group."

On Aug 20, the group had also announced the signing of a binding term sheet with Mega Cinemas Management to acquire cinemas at three locations in Malaysia. "With our combined talent and expertise, we are now in a position to concentrate and implement our expansion plans in the regional market," Mr Ang added.

The three cinemas have a combined total of 13 screens and 2,712 seats.

The group said it expects "substantial contribution" from its cinema business with several Hollywood blockbusters lined up in the upcoming months, coupled with the year-end and Chinese New Year holidays.