mm2 Asia Faces Legal Uncertainty in Malaysia: Key Developments in Hektar REIT Lawsuit

Key Points of the Announcement

• mm2 Asia Ltd. has provided an update regarding ongoing legal proceedings involving its associated company, MM2 Star Screen Sdn. Bhd.
• The case was initiated in Malaysia by MTrustee Berhad, acting for Hektar Real Estate Investment Trust (Hektar).
• MM2 Star Screen, a subsidiary of mm Connect Pte. Ltd. (associated with mm2 Asia), has chosen not to proceed with a proposed consent judgment after financial planning considerations.
• The Sessions Court of Melaka was informed of this decision on 12 September 2025.
• The legal case will now move forward: MM2 Star Screen is required to file a formal Defence, with Hektar to reply in due course.
• The next case management hearing is scheduled for 14 October 2025.
• Malaysian legal counsel has been appointed to manage the proceedings.
• The company has committed to updating shareholders on any material developments.

Potentially Price-Sensitive Issues for Shareholders

• Legal Risk Exposure: The ongoing litigation could have financial and reputational implications for mm2 Asia, especially if the outcome is adverse or the case drags on, potentially increasing legal fees and uncertainties.
• Uncertainty in Financial Planning: The decision to not record a consent judgment signals that the company is reconsidering its financial strategy, possibly due to concerns about the impact of a settlement or judgment.
• Operational Impact: As MM2 Star Screen is a subsidiary of an associated company, the proceedings may have a knock-on effect on mm2 Asia’s consolidated results, depending on the exposure and outcome.
• Shareholder Caution Advised: The Board has explicitly warned shareholders and potential investors to exercise caution in dealing with the company’s shares, and to consult professional advisers if in doubt, underscoring the seriousness of the matter.

In-Depth Analysis and Details

mm2 Asia Ltd., a leading media and entertainment group listed in Singapore, has issued a significant update concerning a legal dispute involving its associated company, MM2 Star Screen Sdn. Bhd. The case was brought against MM2 Star Screen by MTrustee Berhad, acting as trustee for Hektar Real Estate Investment Trust, in the Malaysian Sessions Court of Melaka.

The core issue centers on MM2 Star Screen’s financial planning and legal strategy. After evaluating its position, the company decided not to record a proposed consent judgment, a move that would have seen both parties agree to a settlement. This decision indicates potential concerns about the financial implications of a settlement, or a belief that a legal defense may yield a more favorable outcome.

As a result, the case will proceed through the Malaysian courts. MM2 Star Screen is expected to file its formal Defence, after which Hektar will file a Reply. The next key milestone in the legal timeline is a case management hearing scheduled for 14 October 2025.

Importantly, the announcement stresses that MM2 Star Screen has engaged Malaysian counsel, reflecting the seriousness of the proceedings. The outcome of this dispute could impact the financial health and market perception of mm2 Asia and its associated companies.

Investors should pay close attention to further announcements, as any material development—whether positive or negative—could move the share price. The company’s explicit warning to exercise caution highlights the potential risk and uncertainty hanging over mm2 Asia’s shares until the matter is resolved.

What Should Investors Do?

• Monitor company releases for any updates on the legal proceedings.
• Consult financial and legal advisers before making any investment decisions regarding mm2 Asia shares.
• Be prepared for potential volatility in the share price as the legal case progresses.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult qualified financial advisers and consider their own circumstances before making investment decisions. The outcome of legal proceedings is inherently uncertain and could materially affect mm2 Asia’s financial position and share price.

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