Entertainment company mm2 Asia is mulling the spin-off of its cinema business for its own listing on the Catalist board.
The cinema business of the Company comprises its cinema operation business run via its wholly-owned subsidiary, mm Connect.
According to the company’s website, it runs 133 screens across 18 locations in Malaysia under the mmCineplexes brand, whereas in Singapore, it runs 64 screens across 8 locations under the brand Cathay Cineplexes.
In FY2019, mm2’s cinema business generated revenue of some $100.7 million, out of the total of $266.2 million. In the preceding FY2018, the corresponding numbers were $45 million out of $192 million.
mm2 believes that the proposed spin-off will allow its cinema business to be financially independent and raise the funds required for its new growth opportunities without relying on the parent company for financing or financial support.
mm2 also believes that the spin-off will incentivise senior management personnel of the cinema business to deliver the best possible value to shareholders.
United Overseas Bank and other professional advisers have been appointed for this proposed spin-off.
mm2 Asia shares closed Dec 1 at 16 cents, up 1.29%.