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mm2 Asia to acquire operations at two Cathay cineplexes in Malaysia
ENTERTAINMENT group mm2 Asia said on Monday it has signed a deal with Cathay Cineplexes Sdn Bhd to acquire its business operations at two locations in Malaysia for RM40 million (S$13.8 million).
The two locations are Cathay Cineplex Damansara, e@Curve in Petaling Jaya, Selangor; and Cathay Cineplex City Square at Johor Bahru City Square.
The acquisition is expected to be completed by Sept 30, 2015.
Cathay Cineplexes operates cinemas at these two locations in Malaysia with a combined 30 screens. Cathay Cineplex Damansara holds 16 screens with 2,472 seats in total and is currently the largest multiplex in Petaling Jaya, while Cathay Cineplex City Square holds 14 screens with 2,826 seats in total and is the largest multiplex outside the Klang Valley region.
"The acquisition is in line with the company's intention to diversify and expand into business opportunities along the value chain of film production. The company believes this will complement its current and future businesses, strengthen its competitive advantage through the ownership of cinemas, as well as provide a source of recurring income to the group," it said.
On a pro forma basis, it would bump up its full-year net profit attributable to shareholders from S$5.08 million to S$5.96 million. Earnings per share would go up from 2.46 Singapore cents to 2.88 Singapore cents.