mm2 Asia to pursue Kingsmead transaction and cinema IPO options in parallel

THE proposed sale process of mm2 Asia 1B0 's cinema business will run in parallel with its runway toward listing it on the Singapore Exchange's Catalist board, the company said on Tuesday.

In a bourse filing, the company said that notwithstanding the pending offer for 80 per cent of the business, called mm2 Connect, from local investor Kingsmead Properties pegged at a range of S$80 million to S$120 million, its proposed initial public offering (IPO) continues and will proceed if market conditions are favourable and shareholders approve the plan.

In other words, if Kingsmead is unable to complete its acquisition ahead of mm2 Connect's IPO, the transaction will not proceed, the entertainment firm said. Instead, as previously announced, Kingsmead will have the option of using the S$3 million in deposit it has paid to mm2 Asia so far to purchase shares in mm2 Connect at a discount to the cinema IPO price.

Both transactions will require the approval of mm2 Asia's shareholders, its board added.

The board also said that it will provide further updates to its plans "at the appropriate junctures".

Shares of mm2 Asia last closed at 6.2 Singapore cents, down 0.1 cent or 1.56 per cent, on Friday, Aug 6.

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