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.