mm2 Asia enters MOU to buy two cinemas in Malaysia for RM40m

mm2 Asia has entered into a non-binding memorandum of understanding (MOU) with Cathay Cineplexes Sdn Bhd to acquire two cinemas in Malaysia for RM40 million (S$14.9 million).

The two cinemas have a total of 30 screens, with Cathay Cineplex City Square in Johor Bahru offering 14 screens and Cathay Cineplex Damansara in Petaling Jaya offering 16.

"The proposed acquisition is in line with the company's intention to diversify and expand into business opportunities in the value chain of film production," it said, adding that it will provide a source of recurring income.

One per cent of the RM40 million purchase price is payable upon signing of the MOU, while the remaining amount will be paid in phases upon execution of the sale and purchase agreement, completion of the acquisition and in instalments after completion of the acquisition.