13 Aug – Despite having signed an agreement to sell at least 80 percent of MM Connect to Kingsmead Properties, Singapore's MM2 Asia revealed that it will continue to look at spin-off IPO of its cinema business.
Two weeks after signing with the privately-owned investment firm, MM2 stated that it will continue working towards an IPO and go ahead if the Kingsmead bid fails or not completed before then.
If such a case occurred, the said firm would be able to convert its deposit of SGD 3 million into shares of the unit at a discounted price.
It is noted that the Cathay Cineplexes' parent company were among theatrical film companies that have been badly affected by the COVID-19 pandemic, with Singapore allowing theatres to operate only under strict conditions.
These conditions include allowing for only 100 people capacity with pre-event testing, and 50 without testing. Food and drinks are also not allowed to be served.
The situation has triggered a huge loss to MM2, with its liabilities exceeding assets by SGD120 million.