28th Jul 2016 08:17
LONDON (Alliance News) - Cinema operator Cineworld Group PLC said Thursday it has acquired five UK cinemas from Cinema Holdings Ltd, the holding company of Empire Cinema Ltd, and has also sold its Cineworld Haymarket cinema is central London to Empire as part of the transaction.
Notably as part of the deal, Cineworld purchased the nine-screen Empire Leicester Square multiplex, a London venue often used for film premiers. Cineworld also purchased an 18 screen multiplex in Basildon, a 17-screen multiplex in Hemel Hempstead, a 16 screen multiplex in Poole, and a smaller four screen cinema in Bromley.
Cineworld will pay Empire an aggregate consideration of GBP94 million. The consideration for the transaction will be made half in cash and half in Cineworld shares. The shares will be issued to Empire in five installments during a 12-month period, and the share prices will reflect 20 days' average trading prior to each instalment. The transaction is unconditional and expected to close before the end of August, the company said.
Cineworld said this acquisition should marginally increase revenue for the company within its current financial year, but should provide high single-digit revenue increase in 2017.
The Leicester Square, Basildon, Hemel Hempstead and Poole cinemas are expected to take on Cineworld branding, while company may convert the Bromley cinema into a smaller Picturehouse cinema. Cineworld does not expect to invest any further in the cinemas, as the multiplexes are already fully equipped.
"This acquisition brings Cineworld five modern and well invested venues complementary to our existing estate, including the iconic Leicester Square cinema in the heart of London's West End. It underscores our commitment to operating high quality and modern cinemas across all of our nine operating countries, and our mission to be the best place to watch a movie," Cineworld's Chief Executive, Mooky Greidinger, said.
Shares in Cineworld were up 0.7% Thursday at 580.00 pence.
By Lucy Heming; [email protected]
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