The proposed sale of mm2 Asia’s cinema business to Kingsmead Properties will not be going ahead. The sale was supposed to have been completed by Dec 31, 2021.
On Jan 3, mm2 Asia announced that Kingsmead has opted to exchange the $6 million deposit for the execution of the term sheet for 75 million newly-issued shares in mm2 Asia at 8 cents apiece.
mm2 Asia, on July 27, 2021, announced that it was selling the 80% interest it holds in its cinema business at a loss of $84.7 million. The sale was confirmed on Aug 30, 2021.
According to Kingsmead Properties, the introduction of the Omicron variant had “dampened investing appetite for the moment” even though it saw a “strong turnaround” in the cinema business in Singapore and around the globe.
“We hope to be able to revisit the acquisition again, and hopefully soon enough, when the Covid situation further eases,” says the group.
mm2 Asia’s founder and executive chairman, Melvin Ang says, “We are sincerely grateful to Kingsmead for having expended the time and resources over the last few months working to complete the sale and purchase agreement (SPA) on Cathay Cineplexes.”
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“We welcome them as valuable strategic shareholders of mm2 Asia Ltd. The Omicron effect on investing sentiments was sharp and unexpected. However, mm2 remains optimistic of the recovery of the cinema business as signs are indicating a trend towards recovery. And we definitely will still welcome any new proposal from Kingsmead in the future.”
December 2021 was reportedly Cathay Cineplexes’ best month since the beginning of Covid-19. Cinema chains internationally had also seen their box office takings soar with the release of Spider-Man: No Way Home on Dec 16, 2021.
Shares in mm2 Asia closed 0.1 cent lower or 1.92% down at 5.1 cents on Dec 31, 2021.
Photo: Cathay Cineplexes
