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mm2 Asia in talks to merge Cathay with Golden Village

Writer: Florey DM

mm2 Asia is in talks to merge its Cathay cinemas with Golden Village cinemas.
mm2 Asia is in talks to merge its Cathay cinemas with Golden Village cinemas.

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.


All the GV cinemas in Singapore are run by Hong Kong-listed Orange Sky Golden Harvest Entertainment (Holdings), which also runs cinemas in Hong Kong and Taiwan. It currently has a total of 35 cinemas with 285 screens in the three territories.

Meanwhile, in addition to its Cathay cinemas in Singapore, mm2 Asia also runs another 14 cinemas in Malaysia.

The merging will require approvals not only from the shareholders of both mm2 Asia and OSGH, but also the approval of SGX and Hong Kong Exchange. Approval from relevant government authorities, such as the Competition and Consumer Commission of Singapore in relation to anti-trust issues, will also be required.

(Photo source: Klook)

Cinema Online, 15 December 2020



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