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Tag: Cineworld

  • Cineworld to buy European cinema chain

    Cineworld to buy European cinema chain

    MUMBAI: England’s largest movie theater operator, Cineworld, has announced that it will be buying over 100 multiplexes across Eastern Europe and Israel for $828 million (?503 million).

     

    The purchase will be done in a mix of cash and shares, from Cinema City International (CCI), listed on the Warsaw stock market in Poland.

     

    The company will pay CCI $448 million (?272 million) in cash, and has launched a $181 million (?110 million) share rights issue to help fund the purchase. The proposed tie-up with Cinema City will give it leading positions in Poland, Israel, Hungary, Romania, the Czech Republic, Bulgaria and Slovakia. The cash and shares deal is due to complete in March.

     

    The merged group will have 201 outlets and 1,852 screens across Europe, with the addition of 966 from Cinema City making it the second largest operator in Europe behind Odeon UCI, which has more than 2,100 screens.

     

    According to The Financial Times, Cineworld, which snapped up 21 Picturehouse sites last year, shares rose 5.87 per cent at 415p, continues a run that has pushed up the price almost 50 per cent in a year. CCI shares rose 7 per cent to 32.30 zlotys in Warsaw.

  • Cineworld acquires Picturehouse Cinemas in UK

    Cineworld acquires Picturehouse Cinemas in UK

    MUMBAI: The second-largest British exhibitor Cineworld has taken over art house cinema chain Picturhouse Cinemas by buying out its parent company the City Screen Group for $76 million (?47.3 million) in cash.

    The deal was finalised between Cineworld and City Screen majority owner Arts Alliance and will add 21 sites and 60 screens to its real estate along with Picturehouse Entertainment, the distribution arm operated by the group. Cineworld also made public the fact that it plans to open 10 new locations across UK in the near future. Arts Alliance has been the majority shareholder of Picturehouse since 2002.
    Post the buyout, Picturehouse will operate as a separate business entity within the Cineworld Group and there will be no change in the existing Picturehouse management team that runs the outfit.

    For FY12 Picturehouse reported audited sales of $48.8 million (?30.3 million), profit before tax of $4 million (?2.5 million) and gross assets of $56 million (?35 million).

    Cineworld CEO Stephen Wiener said, "This acquisition gives us an opportunity to accelerate our growth by reaching new audiences in a high value and growing part of the market. We recognize that Picturehouse is valued by its customers and we look forward to supporting the business through the next phase of its development."