The Outrageous Story of mm2 Asia
mm2 Asia is one of the most exciting prospects to grace Singapore stock market in many years. Within two years of listing in the Catalist, the entertainment outfit has witnessed such explosive growth that it ascended to the SGX mainboard on 7 August 2017. Along the way, it has also attracted investment from StarHub.
In 2014, when the company, through its IR agency, requested me to help them promote free tickets for their Jack Neo’s movie, “Ah Boys to Men”, I didn’t really take notice of this company. Fast forward three years later, the shares had been on a red hot bullish run since IPO.
On 19 May 2017, mm2 Asia announced that the company is in discussions with Village Cinemas Australia Pty Ltd (“Village Cinemas”) for the purchase by the Group of Village Cinemas’ entire stake in Dartina Development Limited, a company incorporated in Hong Kong which holds the Golden Village Cinema business in Singapore.
However, the transaction did not materialize. According to mm2 Asia, “Village Cinemas Australia was unable to procure fulfilment of certain conditions under the Shareholders Agreement entered into between Village Cinemas Australia and their existing coshareholder of Dartina Development Limited, and the deal could not be completed”.
On hindsight, the failed transaction could be a blessing in disguise. After all, operating a cinema could be risky as the business is susceptible to technology disruption. Just ask yourself how often you visit the cinema nowadays. Very often, the latest movies or shows could be viewed online at a fraction of movie ticket. Furthermore, during economic downturn, people are less likely to visit cinemas.
However, mm2 Asia’s current business as a content producer is different. No technology can ever replace a content maker. Furthermore, its content products can be distributed at a lower price through online. Thus, during bad times, retailers may not visit cinemas, but opt to watch its contents through online.
The latest move came fast and furious after the [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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