3 Nov – Following its successful acquisitions of a number of cinemas in Malaysia, mm2 Asia Ltd. is now set to acquire Cathay Organisation's entire Singapore cinema operations.
The acquisition will include the entire issued and paid-up share capital of Cathay Cineplexes Pte Ltd and the "Cathay" brand.
"Many Singaporeans grew up with the highlight of their weekend or school holiday being a visit to Cathay cinemas. The Cathay name is very much a part of Singapore's history, and mm2 is proud to be entrusted with the Cathay legacy," said Executive Chairman of the Group, Mr. Melvin Ang, in a statement.
The proposed acquisition amounting to SGD230 million is expected to be completed on 24 November 2017.
Cathay Organisation, founded in 1935 by Mrs Loke Yew and her son Dato Loke Wan Tho, currently has 8 Cathay Cineplexes locations with a total of 64 screens or 11,569 seats in operation in Singapore.
"Cathay cinemas have been in the hands of my family for more than eight decades. It has met and weathered many challenges from within and from without and survived," Cathay Organisation's Managing Director, Ms Choo Meileen, said.
However, the environment has changed, she added, and mm2's respect for the legacy of Cathay cinemas convinced them that Cathay's future will be ensured with the acquisition.
Since 2015, mm2 Asia, through its wholly-owned subsidiary in Malaysia, mm2 Screen Management Sdn. Bhd, has acquired Cathay Cineplexes Sdn Bhd's Cathay Cineplex Damansara and Cathay Cineplex City Square, renamed to mmCineplexes, as well as three Mega Cineplex locations.
This year, mm2 Asia expanded its footprints with the acquisition of 13 LFS Cinemas locations, also in Malaysia. Its bid for Singapore's Golden Village stakes was, however, unsuccessful.
Following this acquisition, mm2 Asia will own a total of 206 screens across 27 locations in Malaysia and Singapore.