mm2 evaluating Catalist listing of cinema business

THE board of mm2 Asia is evaluating a spin-off of its cinema business and a listing on the Catalist board, the mainboard-listed firm announced in a Tuesday bourse filing after trading hours.

mm2's cinema business is currently conducted through its wholly-owned unit, mm Connect, and its subsidiaries. A spin-off would enable the cinema business to be "financially independent" and raise the funds required for new growth opportunities without relying on mm2, the firm said.

This would also "incentivise senior management personnel of the cinema business to deliver the best possible value to shareholders", mm2 added. It has appointed United Overseas Bank and other professional advisers to advise on the proposed spinoff and listing.

Shares of mm2 closed at S$0.157, up 1.29 per cent, on Tuesday before the announcement.