9 Nov – Singapore-based entertainment company mm2 Asia is set to acquire 13 Lotus Five Star (LFS) Cinemas locations in Malaysia for RM118 million.
"We have signed the MOU (memorandum of understanding)," said Mr. Garuna Murthee, Managing Director of LFS Cinemas, when contacted by Cinema Online.
"We are planning to put out a few more cinemas, so we're working together with mm2 Asia."
Mr. Garuna revealed that out of the current 26 LFS locations in Malaysia, 13 are to be acquired by mm2 Asia, and the acquired cinemas, with 90 screens in total, will "most probably be rebranded".
LFS Cinemas will, however, still have control over the operations of the cinemas.
Mr. Garuna added that the acquisition is expected to be completed by February 2017.
Ms. Angelin Ong, General Manager of MM2 Malaysia and Chief Operating Officer of mmCineplexes, has also confirmed the news of the LFS Cinemas locations acquisition when contacted by Cinema Online earlier.
"When there are good opportunities we will consider," said Ms. Angelin when asked if mm2 Asia has plans to open new cinemas to expand on its cinema chain.
mm2 Asia has last year acquired Cathay Cineplexes Sdn Bhd's Cathay Cineplex Damansara and Cathay Cineplex City Square, which have since been renamed to mmCineplexes, for RM40 million, followed by three Mega Cineplex locations (Mega Cineplex Prai, Mega Cineplex Langkawi, Mega Cineplex Bertam) in Malaysia for RM22 million.
Once the acquisition of the LFS Cinemas locations are completed, mm2 Asia will have 18 cinemas with a combined total of 133 screens in Malaysia.