Just as the recovery is on the horizon, mm2 is throwing in the towel and selling its cinemas for half or more of its purchase price. Given its financial situation, they probably had no choice to this fire sale. If they had tried to sell this last year, they might have gotten a better price. Like most stockholders in the red, they were probably hoping for the pandemic situation to get better sooner rather than later.
Crowds will eventually be back in cinemas when things return to normal, so it looks like a pretty good deal for the buyer.
With the benefit of hindsight, mm2 levered at the wrong time for this acquisition, and it is close to costing them everything. A good reminder that the use of leverage -- whether on a corporate or personal level -- should be carefully considered, and that even the smart users can get burned.
https://www.straitstimes.com/business/co...properties