15 Dec – mm2 Asia, which currently runs eight cinemas under the Cathay brand in Singapore, is in talks to merge its Cathay cinemas with Golden Village (GV).
The Edge Singapore reported that both parties are still negotiating the financial terms. As per mm2 Asia, merger terms will be discussed based on the operating figures of fiscal year 2019.
Due to the COVID-19 pandemic, the cinema business in Singapore has taken a hard hit this year.While Singapore's GV generated a turnover of HKD810.3 million for FY2019 ended December 2019, it's only generated HKD137.4 million in the following six months that ended 30 June 2020, due to cinema closures.
The merging of the eight Cathay cinemas with the 14 GV cinemas will turn them into the largest cinema operator in Singapore. Reportedly, both parties will be bringing in new investors to help boost the combined business.
The new investors' funds will provide the combined business with the capital needed to cope with operating costs as well as to strengthen its balance sheet.