The assets will be acquired from MCAT Box Office Sdn Bhd and Reel Entertainment Holdings Sdn Bhd, both operators of the MBO cinema brand.
Both MCAT and Reel Entertainment are currently going through a creditors’ voluntary winding up process, as business revenues have fallen sharply due to the nationwide lock-downs.
While no information on the acquisition value was disclosed, MBO’s website states that it has 27 cinemas across the country.
The global pandemic has decimated retail businesses all over the world, and cinemas have been severely affected.
From this outcome, it looks like GSC Cinemas will remain the de-facto market leader in the country for years to come.
The deal is expected to be completed by June 2021.
“We view the Covid-19 pandemic as a temporary setback and are confident that once the pandemic has passed, audiences deprived of out-of-home-entertainment will return to the cinemas with a vengeance, consistent with what we have seen happen in other regions, ” said GSC CEO Koh Mei Lee.