Possible Cathay and GV merger?

[StreetFight3r]

Just a week after announcing a possible spin off separate listing of its cinema business, entertainment company mm2 Asia is in talks to merge this business, operating mainly under the Cathay brand, with competitor Golden Village.

As part of the deal, the parties aim to bring in new investors to help beef up the combined entity, which is going to be the largest cinema operator in town.Mm2 Asia now runs 8 Cathay cinemas in Singapore, and 14 in Malaysia. The potential merger partner, Hong Kong listed Orange Sky Golden Harvest Entertainment (Holdings), runs another 14 cinemas under the Golden Village brand in Singapore. The Hong Kong company, previously known as "Golden Harvest" runs a total of 35 cinemas with 285 screens in Hong Kong, Taiwan and Singapore.

The deal will need to jump through several hoops: approvals from both mm2 Asia and OSGH shareholders; approval of SGX and Hong Kong Exchange, as well as relevant government authorities, including the Competition and Consumer Commission of Singapore in relation to anti-trust issues.Under the initial heads of agreement, the parties are still negotiating the financial terms.

According to mm2 Asia, the merger terms will be discussed based on the FY2019 operating figures, subjected to mutually agreed adjustments.For FY2019 ended Dec 2019, OSGH's Singapore cinema business generated a turnover of HK$810.3 million, down slightly from HK$822.1 million in the year earlier. Operating profit in the same period was HK$139.8 million, down from HK$150 million.

Unsurprisingly, Covid-19 has hit the cinema business hard. For the six months ended June 30 this year, Golden Village's Singapore revenue was just HK$137.4 million, due to the circuit breaker measures. It made a loss of HK$16.9 million. For the six months ended June 30 2019, it generated revenue of HK$401 million for its Singapore cinema business, and operating profit of HK$70.6 million.

If the merger is completed, the combined entity will be able to enjoy advantageous economies of scale, and provide more financial and operating stability. The company also notes that there has been general disruption to the movie and cinema business, with the advent of content streaming apps and the growth of video content on social media. The merger would result in a stronger platform for the operation of the cinema business.

The funds from new investors will also provide the additional working capital for the combined business to cope with operating costs, and strengthen the balance sheet of the combined business.

[Jman888]

two of the better cinema operators

Shaw, Filmgarde and Eng Wah doesn't have many screens. Cathay has cinemas not near GV, good expansion for GV.

[Mustank]

I love mergers

[kobayashiGT]

48 minutes ago, Mustank said:

I love mergers

why leh?

[SGCM928]

I feel that such merger are bad for us consumers as might end up paying higher price due to lack of competition, or monopolisation.

For example after Grab took over Uber, there are not much of promo code to offset charges, while after NTUC's acquisition of Kopitiam chain, I can no longer find decent portion of food at below $4 at food courts in general.

Our Competition and Consumer Commission of Singapore (CCCS) should review such merger request more stringently to protect consumers interest. 

[13177]

Yes mergers no good as consumers would not enjoy much discount and perks since no competition, no need to attract customers.

[Meanmachine]

Mergers means game over for this industry . . . it alike being eaten up for nothing, i see property sectors merger, acquisition and enbloc sales, likely a take-over, the live streaming , Netflick and what not are literally taking over the cinema industry.

[Beregond]

1 hour ago, SGCM928 said:

I feel that such merger are bad for us consumers as might end up paying higher price due to lack of competition, or monopolisation.

For example after Grab took over Uber, there are not much of promo code to offset charges, while after NTUC's acquisition of Kopitiam chain, I can no longer find decent portion of food at below $4 at food courts in general.

Our Competition and Consumer Commission of Singapore (CCCS) should review such merger request more stringently to protect consumers interest. 

but they dun merge, they die, consumers left with nothing also.

both cathay and gv are old brand, unless left with no choice i doubt they will choose this route. 

like uber and grab, last time consumer feel shiok cos they are bleeding every year to give us cheap ride. is it workable in long term? impossible ma.

[Jman888]

singapore is too small for cinema operators, small cinema won't survive with or without competition cos you need to provide the experience that customer looking for. Merging won't hurt the consumer as there are so many alternatives available.  How many people here actually go to cinema every week like myself?

even when ticket price set at $7 also not many people going to watch if no good movies screening. 

[Blueray]

4 hours ago, Jman888 said:

two of the better cinema operators

Shaw, Filmgarde and Eng Wah doesn't have many screens. Cathay has cinemas not near GV, good expansion for GV.

i like Eng Wah Toa Payoh last time cos nobody go.

Think TPY folks also go Junction 8 or Orchard.

now only Eng Wah left is at Clementi, mainly small screens so can only watch dramas, lomance etc. Action one cannot enjoy. 

My favourite one is Lido Hall 4. 

I get the impression that Cathay blast their sound system loudest. Good for watching Abenjers, Mission Impossible etc ...

[Watwheels]

A lot of times we want to go to the movies as a family but the censorship board here killed it for us. Agree or not?

Like for example the now showing anime Demon Slayer. My kids watched the whole of season 1 with us on Netflix. The movie is now rated NC16. Means my kids cannot go watch cos under 16. Sian 1/2.

They are mature enough to know the characters are fictional, story's made up and blood is in animation. They put a rating like that means no sale (family of four) for GV or whatever movie operator. Sad for everyone. Now is what age already? Still restrict people what they want to watch. Stifling.

[Mrmilktooth]

3 hours ago, Watwheels said:

A lot of times we want to go to the movies as a family but the censorship board here killed it for us. Agree or not?

Like for example the now showing anime Demon Slayer. My kids watched the whole of season 1 with us on Netflix. The movie is now rated NC16. Means my kids cannot go watch cos under 16. Sian 1/2.

They are mature enough to know the characters are fictional, story's made up and blood is in animation. They put a rating like that means no sale (family of four) for GV or whatever movie operator. Sad for everyone. Now is what age already? Still restrict people what they want to watch. Stifling.

happened to watch (stumble upon) avengers infinity war on ch5.. besides the ridiculous # of tv ads... the part where thanos pierced stark's torso was censored!!!... skip a few frames.. 

like whaaadddd!!!???>.. lol reminded me why i chose to watch netflix instead.. 

 

cinemas are a sunset industry as well.. no thanks to the vid... mergers will keep the jobs of the remaining too.... 

 

i dont watch movies in cinemas anymore with a growing family.... 

[Yewheng]

7 hours ago, SGCM928 said:

I feel that such merger are bad for us consumers as might end up paying higher price due to lack of competition, or monopolisation.

For example after Grab took over Uber, there are not much of promo code to offset charges, while after NTUC's acquisition of Kopitiam chain, I can no longer find decent portion of food at below $4 at food courts in general.

Our Competition and Consumer Commission of Singapore (CCCS) should review such merger request more stringently to protect consumers interest. 

Actually not really, this merger might be a good thing as maybe because of pandemic it is not feasible to operate both size by side as it might be resource heavy vs the income from sales of ticket, drinks, popcorn and etc.. So a merger will be able to consolidate the resources and would be able to operate more efficiently like maybe before merger each individual companies have their own ceos, cfo, head of hr and the list goes on. After merger, now only need one of all these key appointments and etc instead of 1+1 = 2 now. 

 

Plus if after merge, the new company could be able to say operate more efficiently aka if no merge there will have duplication of say movie timing between the 2 companies. Now one company, the movie timing would not have duplication as that is one company planning the movie slot. So it would be more efficient admit more and more people do not go watch movies in this modern day, that's the reason the more they should operate in even more efficient way. One of it is the merge, if not merge, both will operate inefficient and then maybe say 5 yrs time, both of these companies goes bankrupt then it does not benefit anyone at all. 

If you guys free can go read up hollywood video and blockbuster merger failed and part of it is because of government want to impost antitrust law to these 2 companies merger. End up blockbuster withdraw the merger as to prevent tio antitrust law from the government. Then look what happened to these 2 Companies? If they merged, perhaps they could be able to survived the Netflix coming into the market. As a big company would be able to have better resources allocation to be able to compete and or change to adept to fight with neflix. Who knows.. 

 

 

 

Edited December 10, 2020 by Yewheng

[Watwheels]

20 minutes ago, Mrmilktooth said:

happened to watch (stumble upon) avengers infinity war on ch5.. besides the ridiculous # of tv ads... the part where thanos pierced stark's torso was censored!!!... skip a few frames.. 

like whaaadddd!!!???>.. lol reminded me why i chose to watch netflix instead.. 

 

cinemas are a sunset industry as well.. no thanks to the vid... mergers will keep the jobs of the remaining too.... 

 

i dont watch movies in cinemas anymore with a growing family.... 

I think the movie operators must hate the censorship board a lot. It's not helping the business. 

Merger is also not a good sign for the industry.

[inlinesix]

7 hours ago, SGCM928 said:

I feel that such merger are bad for us consumers as might end up paying higher price due to lack of competition, or monopolisation.

For example after Grab took over Uber, there are not much of promo code to offset charges, while after NTUC's acquisition of Kopitiam chain, I can no longer find decent portion of food at below $4 at food courts in general.

Our Competition and Consumer Commission of Singapore (CCCS) should review such merger request more stringently to protect consumers interest. 

I took cabs a lot more than Grab as it is always cheaper.

Even though there is no competition within PHV, it is PHV vs Cab.

Similarly, cinema has to fight with Netflix or any streaming service.

[ToyotaShuttle]

51 minutes ago, Mrmilktooth said:

happened to watch (stumble upon) avengers infinity war on ch5.. besides the ridiculous # of tv ads... the part where thanos pierced stark's torso was censored!!!... skip a few frames.. 

like whaaadddd!!!???>.. lol reminded me why i chose to watch netflix instead.. 

 

cinemas are a sunset industry as well.. no thanks to the vid... mergers will keep the jobs of the remaining too.... 

 

i dont watch movies in cinemas anymore with a growing family.... 

cinema is good for kids and young adults. to have dates and hanky panky in the dark away from prying eyes of their parents?

you never try before?

[Watwheels]

8 minutes ago, ToyotaShuttle said:

cinema is good for kids and young adults. to have dates and hanky panky in the dark away from prying eyes of their parents?

you never try before?

Whoa, give ppl free show when the show ends? That's a good deal for a movie ticket.

[ToyotaShuttle]

12 minutes ago, Watwheels said:

Whoa, give ppl free show when the show ends? That's a good deal for a movie ticket.

from what you wrote, can tell you lack exp 😁