mm2 Asia to acquire Cathay Cineplexes for $230 million as it expands cinema business
Singapore media company mm2 Asia has entered into an option agreement with Cathay Cineplexes to acquire the latter’s entire cinema business in Singapore as well as the Cathay brand.
In a press release on Thursday (2 November), mm2 Asia said it would pay $230 million for Cathay’s operations starting with a $15 million deposit, followed by the balance amount within six months after completing the agreement.
The move to acquire Cathay is part of mm2 Asia’ “planned strategic expansion of its cinema business” and comes less than a year after the latter’s bid to secure a stake in the Golden Village cinema business in Singapore fell through.
Once the deal is sealed, mm2 Asia will have eight cinemas with a combined total of 64 screens and 11,569 seats in Singapore. All employees of Cathay Cineplexes will be retained.
“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 Melvin Ang, executive chairman of mm2 Asia.
Referring to Cathay Organisation’s managing director Choo Meileen, he added, “My team and I are resolved to, not only zealously protect the Cathay Cinemas’ legacy, but also to realise her vision for Cathay Cinemas to be one of the major film exhibitors in the Asian market.”
Cathay Organisation was founded in 1935 by Loke Yew and her son Loke Wan Tho, and has since grown to become a household brand name in Singapore.
“Cathay cinemas have been in the hands of my family for more than eight decades… However, the environment has changed, and for an entertainment company to survive today, it needs to extend its reach broadly,” said Choo. “To ensure Cathay’s future, we came to the very difficult decision to let go of this grown child, to allow it to embrace bigger and better things.”
With the scheduled completion of the acquisition on 24 November, along with mm2 Asia’s acquisition of Malaysia’s Mega Cineplex in 2015, the company will own a total of 206 screens across 27 locations in Singapore and Malaysia.
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