SINGAPORE (June 13): mm2 Asia has entered into an agreement to acquire Village Cinemas Australia’s entire 50% stake in Dartina Development for S$184.3 million.

Dartina is an investment holding company incorporated in Hong Kong which holds, through its Singapore subsidiaries, the Golden Village Cinema business in Singapore.

The consideration is 10.5 times the aggregate earnings of the Singapore subsidiaries before interest, taxes, depreciation and amortisation for the period ended Dec 31 2016.

mm2 Asia says the acquisition is in line with its strategy to further strengthen its presence in the downstream value chain of film distribution. The group also believes the acquisition will complement its current operations in Malaysia and provide a source of recurring income.

The proposed acquisition will be funded by a combination of bank borrowings, internal cash resources and proceeds from fund raising exercises.

Share price of mm2 Asia closed at 62 Singaporean cents on Tuesday.