PETALING JAYA: Local cinema chain Golden Screen Cinemas (GSC) has announced that it is acquiring assets from the operators of MBO Cinemas, the third-largest cinema chain in the country.
GSC, which is owned by PPB Group Bhd, said it had signed an asset sale agreement on Feb 23 to acquire “the majority of cinema assets” from MCAT Box Office Sdn Bhd and Reel Entertainment Holdings Sdn Bhd.
GSC Chief Executive Officer Koh Mei Lee said PPB Group remained committed to the growth of the cinema sector, adding that they were optimistic about the industry’s revival after the pandemic had passed.
“We are confident that the acquisition of MBO Cinemas’ assets, together with the impending roll-out of the vaccine, will help accelerate our recovery from this pandemic,” she said in a statement.
Koh added that the deal was expected to be completed by the end of June.
It was previously reported that MBO was facing liquidation due to cash flow problems stemming from the first movement control order (MCO) imposed last March.
It was previously reported that as at Dec 31, 2018, MBO Cinemas’ total assets were valued at RM197.76 million while total liabilities stood at RM111.31 million.
MBO has cinemas in 27 locations nationwide, but only four venues were open during the recovery MCO.
