Asia Digest: Keppel divests Chengdu Shengshi stake; mm2 gets bid for Cathay cinema unit

A Keppel unit has divested its stake in Chengdu Shengshi for $242 million while SGX-listed media company mm2 Asia has got an offer for Cathay cinema business from Kingsmead Properties.

Keppel unit divests stake in Chengdu Shengshi Jingwei Real Estate

Keppel Land China Limited, through its subsidiary, Hillwest Pte Ltd, is divesting its equity interest in Chengdu Shengshi Jingwei Real Estate to units of China Vanke Co, Ltd for approximately 1.561 billion yuan ($242 million), per a press statement.

Following the deal, Chengdu Shengshi will cease to be a subsidiary of Keppel. The company owns a residential development project in Mumashan, Chengdu, China.

Keppel Corporation Limited expects to recognise a divestment gain of approximately 668 million yuan (approximately $103 million) from the deal. The divestment is expected to be completed by the second half of 2021.

mm2 Asia bags offer for its Cathay cinema business 

SGX-listed entertainment group mm2 Asia Ltd announced that it has received an offer for its Cathay cinema business from local financial investment firm Kingsmead Properties. mm2 Asia acquired the cinema chain in 2017 for $230 million.

mm2 Asia entered into a non-exclusive binding term sheet with Kingsmead Properties for the proposed sale of at least 80% of the cinema business, according to a press release.

Taking into account prevailing market factors, the proposed acquisition price is based on a valuation of between $80 million and $120 million for the entire cinema business. Kingsmead will pay a $6 million deposit.

mm2 Asia added that other options, including a merger or an initial public offering of the cinema business, are still ongoing.

Last year, mm2 Asia was reportedly in talks about the possible merger of its Cathay cinema business with Golden Village cinemas in Singapore, owned by Orange Sky Golden Harvest Entertainment (Holdings) Limited (OSGH) to bring in more investors and create economies of scale. Both cinema chains recorded revenue losses due to the Covid-19 pandemic.

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.