Media content provider mm2 Asia on Thursday said it entered into an agreement with Cathay Organisation Pte for the purchase of Cathay Cineplexes' Singapore cinema operations for S$230 million.
The move, which will see the Group acquiring the venerable "Cathay" brand, is part of the company's planned strategic expansion of its cinema business, mm2 Asia said in a regulatory filing.
Founded in 1935, Cathay Cineplexes currently operates cinemas across 8 locations in Singapore.
"Many Singaporeans grew up with the highlight of their weekend or school holiday being a visit to Cathay cinemas. The Cathay name is very much a part of Singapore's history, and mm2 is proud to be entrusted with the Cathay legacy", said Executive Chairman of the Group Melvin Ang.
The proposed acquisition, which will be funded entirely through internal funds and borrowings, is targeted for completion on November 24, 2017.
Following this acquisition, mm2 Asia, including through its cinema business in Malaysia operated by its wholly-owned subsidiary, mm2 Screen Management, will own cinemas with a total of 206 screens across 27 locations.
Shares in mm2 Asia fell 0.9 percent to S$0.57 on the Singapore Exchange. The stock has gained 27 percent so far this year.