mm2 board's approval of Vividthree spin-off paves way for Catalist listing

THE spin-off of visual effects company Vividthree Productions paves the way for its eventual Catalist listing, Mainboard-listed mm2 Asia said in a statement.

In a release after Wednesday's market close, mm2 Asia said its board had approved the spin-off of Vividthree Productions, a Singapore-based studio in which it took a 51 per cent stake in 2015, and will eventually list on the secondary board.

mm2 Asia did not provide a timeline for the listing.

By spinning off the studio, mm2 says the move will allow Vividthree to be "financially independent" and help raise funds for growth without relying on mm2's financing, and will also "incentivise" Vividthree's senior management to deliver the "best possible value" to shareholders.

Vividthree Productions is a studio involved in visual effects, 3D animation, virtual reality and computer generated imagery. Its work has appeared in films such as the Jack Neo-helmed Ah Boys to Men series, as well as Hollywood movies.

The Singapore Exchange, mm2 said, has no objection to the proposed spin-off, and states the move does not amount to a chain listing.

Vividthree has appointed Hong Leong Finance as the sponsor and issue manager for the listing.

mm2 Asia's shares closed flat at 51 Singapore cents apiece on Wednesday.