MM2 Asia eyes IPO options while signing with Kingsmead
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MM2 Asia eyes IPO options while signing with Kingsmead

The cinema industry has been severely impacted by the pandemic
The cinema industry has been severely impacted by the pandemic

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.



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