mm2 Asia

[weijian]

hi YMPL,
The last rejection that i can remember off my head was coming from Centurion Corp, who wanted to spin off their dorm businesses into a REIT. it was rejected by SGX as it was considered a chain listing.

Definition of chain listing: A subsidiary or parent company of an existing listed issuer will not normally be considered suitable for listing if the assets and operations of the applicant are substantially the same as those of the existing issuer. In arriving at a decision, the Exchange will consider the applicant's business or commercial reasons for listing.
http://rulebook.sgx.com/en/display/displ...69&print=1

I don't follow mm2 closely but i took a quick look at its AR2016, which may answer the question:
- mm2 accquired a 51% stake in UnUsUal in May 2016 (pg 7 of AR16)
- A chart of mm2 operations (pg 13 of AR16) suggest that it is mainly a producer/distributor of TV/movie content and also operates cinemas in Malaysia.
- Based on UnUsUal website, it seems like it is a concert organizer/promoter, which is different from mm2's businesses --> So i think that explains it.

mm2 AR16: http://repository.shareinvestor.com/rpt_...filename/1

[weijian]

So, it will only be shown on pay-TV (for now), when we could watch the China version on free-to-air channels. I wonder whom will be the judges? (arguably, the judges and their camaraderie are one of the biggest attraction in this show)

MM2, ASTRO AND STARHUB TO CO-PRODUCE THE VOICE (SIN/MAL)

mm2 Entertainment (a wholly-owned subsidiary of mm2 Asia Ltd.) announced today that The Voice, Talpa’s flagship talent format, will be coproduced by mm2, StarHub, and Astro. This is the first time the highly successful format is produced and broadcast for two territories in one version.

http://infopub.sgx.com/FileOpen/mm2%20-%...eID=445191

[karlmarx]

mm2 has been making steady moves into the stable movie distribution businesses and this is its biggest acquisition yet. Given the large acquisition cost, perhaps there might be a rights issue to provide partial financing. After all, its high share price makes issuing shares less costly.

http://infopub.sgx.com/FileOpen/Proposed...eID=457693

It is paying $184m for $11m of earning from a 50% ownership of Singapore GV. This p/e is higher than its previous cinema acquisitions:

http://www.businesstimes.com.sg/companie...ar-cinemas

http://www.businesstimes.com.sg/companie...n-malaysia

Now mm2 can be considered to be more of a cinema operator, than a movie producer. A stable, but no/low growth business. I will value the cinema business at a p/e of 10. Looking at the share price, the run up has certainly been amazing. Bloomberg shows it has a p/e of 51. I will look at this when it becomes cheap again.

[weijian]

To partially pay for the cinema acquisitions, mm2 has done 2 placements - ~50mil (brokers to place it out) and ~15mil (to StarHub) at 57cents.

50mil: http://infopub.sgx.com/FileOpen/mm2%20-%...eID=457837
15mil: http://infopub.sgx.com/FileOpen/mm2%20-%...eID=459527

[karlmarx]

Good for mm2. But too bad for shareholders who didn't get to participate in the discounted offering.

[karlmarx]

They sure know how to keep things interesting for shareholders!

http://infopub.sgx.com/FileOpen/mm2%20-%...eID=466726

Now that the GV cinema acquisition deal fell through, they have plenty of cash...

[cyclone]

mm2 Entertainment to Produce 5 films with New Culture Media Hong Kong and 9i in Next 3 Years

mm2 Entertainment Pte. Ltd. (a wholly-owned subsidiary of mm2 Asia Ltd.), will sign a Memorandum of Understanding (“MOU”) with New Culture Media Hong Kong Ltd. (a wholly-owned subsidiary of Shanghai New Culture Media Group Co., Ltd.) and 9i Film & Television Media Co. Ltd., to co-invest and co-produce, over the next 3 years, a total of USD 25 million in 5 films and multiple online films, a format which is now immensely popular on the Chinese Internet. The MOU will be signed during the 2017 ContentAsia Summit.

More details in http://infopub.sgx.com/FileOpen/mm2%20-%...eID=469832

[cyclone]

UnUsUaL Limited Founders Bought $10 Million Worth of mm2 Asia’s Shares

mm2 Asia Ltd. (collectively with its subsidiaries, the "Group") saw a personal investment of $10 million in total by founders of UnUsUaL Limited - Leslie Ong and Johnny Ong. They each acquired $5 million worth of shares at $0.485 per share from the Group’s Executive Chairman- Melvin Ang.

Leslie Ong and Johnny Ong, who founded UnUsUaL in 1997, viewed the personal investment as a vote of confidence in the Group’s future, citing that UnUsUaL’s growth since the Group’s acquisition in 2016 has largely benefited from the Group’s regional experience and networks, which led to an increase in revenue of about 30% between FY2015 and FY2017.

More details in http://infopub.sgx.com/FileOpen/mm2%20-%...eID=469967

[karlmarx]

The 50% GV acquisition deal valued GV cinemas at 10.5xEBITDA, or a P/E of about 16.

This latest deal to acquire 100% of Cathay cinemas in Singapore is valued at 13.85xEBITDA. NPAT figures of Cathay were not revealed, but I guess P/E is likely to be close to 20. If you are willing to spend more, you can surely get what you want, in the equity market at least.

http://infopub.sgx.com/FileOpen/mm2%20As...eID=476484

[cyclone]

Singapore, 31 January 2018 – The Board of Directors of mm2 Asia Ltd. have approved the spin-off of Vividthree Productions Pte. Ltd. ("Vividthree") as an initial step for Vividthree to seek listing on the Catalist. The planned IPO of Vividthree will allow the company to raise the working capital needed to realise the full potential of their new business initiative.

About Vividthree Productions Pte. Ltd.
Since its humble beginnings in 2006, the multi-award winning Vividthree Productions Pte. Ltd. has grown to become a leading player and go-to studio in the field of visual effects (VFX), 3D animation, virtual reality and computer generation imagery (CGI) in Singapore.

To date, Vividthree’s brand of excellence can be found in numerous local/foreign award-winning and topgrossing feature films: Singapore director Jack Neo’s box-office breaking trilogy Ah Boys to Men 1, 2, and 3; Hollywood’s Robotropolis (sold to over 20 countries worldwide) and the Dolph Lundgren vehicle Battle of The Damned are just some of the films that audiences could experience Vividthree’s magic at work.

Vividthree also has a production/content arm that has completed numerous glossy award-winning commercials, vignettes, TV spots and channel revamps already under its belt. The company’s talented Film/Content, VFX and Design departments collaborate and work closely with their clientele, one which runs the gamut -- from renowned Film & TV directors, local and regional broadcasters, big name advertising agencies, to those from the corporate and government sectors -- to deliver products that always exceed expectations.

In early 2015, Vividthree became a subsidiary of mm2 Asia Ltd. ((SGX stock code: 1B0) through the latter’s acquisition of a 51% stake in the former.