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mm2 Asia unit acquires 19.68% stake in Hong Kong's Cinema Pro for HK$4m
A UNIT of film and TV content producer mm2 Asia has agreed to acquire a 19.68 per cent stake in a Hong Kong cinema management service provider for HK$4 million (S$720,000).
The Catalist-listed company said in a filing after market close on Wednesday that wholly owned subsidiary, mm2 Entertainment, has entered into a binding memorandum of understanding with Hong Kong's Cinema Pro.
mm2 Entertainment will purchase 3.2 million new shares at HK$1.25 each of Cinema Pro. This gives it a 19.68 per cent share of the enlarged share capital.
The majority owner of Cinema Pro is Taiwan's Kbro Media Co Limited. Kbro Media is in turn a subsidiary of Taiwanese conglomerate Fubon Group that has over US$190.8 billion in assets.
This investment gives mm2 a foothold into North Asia's cinema industry.
"The recent increase in the number of malls in key markets across Asia has created unprecedented collaboration opportunities between mall owners and professional cinema management operators," said Hock Ong, chief executive officer of the mm2 group's cinema business.
"With our recently acquired expertise from mmCineplexes, and the experience and strength of the current management team in Cinema Pro, we are confident to increase our presence in new cinema projects opportunities across Asia."
Share price of mm2 Asia was up by 1.05 per cent to S$0.480 apiece on Wednesday before the announcement.