StarHub has said it is taking a 9.05 percent stake in Catalist-listed mm2 Asia Ltd (mm2 Asia) as it looks at expanding its pay TV offerings in the country.
The Singapore main board listed firm said it is paying $18 million or 41 cents a share in the deal.
Headquartered in Singapore, mm2 Asia is a producer of content for TV and online platforms, and films.
StarHub has been partnering mm2 Asia since 2012 through successful investments in the Ah Boys To Men and Lion Men movie series which were co-produced by mm2 Asia.
"Taking a stake in mm2 is a strategic move. It unlocks opportunities to expand our pay TV offerings through original content creation that will set us apart in the cluttered content space," StarHub CEO Tan Tong Hai said.
"mm2 can also potentially extend the reach of our localised content through marketing and distribution efforts beyond Singapore shores. In addition, we may choose to tap on mm2's cineplex business to showcase our content, as well as gain access to top-rated concerts and artistes through UnUsUaL of which mm2 is looking to own a stake," he said.
mm2 Asia also has a presence in China, Hong Kong, Malaysia and Taiwan through its group of companies and/or strategic working partnerships. mm2 Asia has co-produced and/or distributed more than 50 films across Asia since 2008.
"We're honoured to have StarHub as one of our shareholders. For many years, mm2 has been working closely with StarHub across many areas. This equity participation by StarHub in mm2 cements our working relationship and is a significant endorsement for our company," said Melvin Ang, CEO of mm2 Asia.
