In a June 1 note, Ling is maintaining “hold” on mm2 Asia with a lower target price of 6 cents from 6.7 cents previously. The research house is also suspending coverage of mm2 Asia due to a “reallocation of resources”.
Film and concert producer mm2 Asia needs “concrete plans” to reduce gearing, as proposed initiatives to reduce debt have lapsed, says DBS Group Research analyst Ling Lee Keng.
“mm2 Asia had proposed several initiatives in the past to pare down its debt, but these have since lapsed. Previous proposals include spin-off and listing of cinemas, sale of cinemas, and merger of the cinema business with Golden Village cinemas in Singapore. The group continues to explore new avenues to pare down its debt,” writes Ling.
