Singaporean media mini-conglomerate MM2 Asia is buying the 50% stake in the Golden Village theater chain currently owned by Australia’s Village Roadshow. It disclosed a price of US$133 million (S$184 million) for half of the company.
Golden Village is Singapore’s leading cinema chain, currently operating 11 multiplexes of different sizes across the city state. It also acts as a distributor, both acquiring some titles and jointly distributing others with Singapore’s independent distributors.
The company was established 25 years ago as a joint venture between Hong Kong’s Golden Harvest and Australia’s Village Roadshow. After the sale, Golden Village will become a joint venture with Orange Sky Golden Harvest, the successor company to Golden Harvest.
MM2 said the purchase price was calculated as a multiple of 10.5 times net profits. It said that the acquisition is “in line with the [company’s] overarching strategy to further strengthen its presence in the downstream value chain of film distribution.”
Headed by Melvin Ang, MM2 has expanded rapidly from film and TV production in Malaysia and Singapore into cinema ownership. It has acquired two smaller cinema chains in Malaysia. It was listed on the Singapore stock market in late 2014. In recent weeks it announced plans to give one of its subsidiaries, UnUsUaL, an IPO and a separate stock listing.