Chinese group buys owner of cinemas El Corte Inglés – Daily News – Lisbon

In Lisbon and Porto change hands 45 rooms, including the Dolce Vita Tejo and Arrábida 20. But should keep the UCI brand

cinemas El Corte Inglés, the Dolce Vita Tejo in Lisbon and Arrábida 20 in Porto, changed hands after the Odeon-UCI British have been acquired by AMC Entertainment Holdings, a subsidiary the Chinese group Wanda group, Wang Jianlin millionaire. A deal valued at 921 million pounds (1.079 billion euros). The first business of the post-brexit to overcome the barrier of one billion euros

“It’s a unique opportunity – to acquire the chain of cinemas leader in Europe and create the biggest and best in the world cinema exhibitor.” says Adam Aron, director-general and president of AMC. Held for 12 years by Terra Firma fund, the Odeon-UCI is the largest European operator, with 242 cinemas and 2236 rooms. In Portugal, where it faces the leadership of the US Audiovisual, runs three films (two in Lisbon and one in Porto) and 45 rooms. Despite the change of hands, the cinemas will continue to operate in the Portuguese market under the UCI brand.

With this acquisition, the Chinese millionaire group Wang Jianlin now owns 627 cinemas and more than 7,600 rooms in eight countries such as the UK, Ireland, Italy, Spain, Austria and Germany. Position could be strengthened if the United States close the purchase of Carmike. AMC is willing to pay 1.1 billion dollars (995.6 million euros) for the fourth largest chain of cinemas in the US – with 276 theaters and 2,954 rooms, this until March in 41 states – strengthening its position in market where it is the second largest chain after Regal Entertainment Group

Despite the Carmike have postponed at the end of June, a decision on the sale. – the vote was postponed to July 15, after a few shareholders consider the $ 30 per share offered by AMC low value – AMC says still maintain interest. More, the “opportunistic transaction” Odeon-UCI does not prevent a future purchase of Carmike, since “AMC has financial commitments and the flexibility to perform both transactions” he said.

Buying Odeon-UCI is an operation valued at more than billion, but it entails the absorption of net debt of 477.2 million (407 million pounds). That is, the AMC will only pay £ 500 million (€ 586 million) for the assets, 75% in cash and 25% stock.

The operation, which should be completed by the end of the year , it is still subject to OK the European Commission Directorate-General for Competition and the consultation of the Council of Europe Business.

the timing of the purchase was accelerated by brexit. In May, the AMC would be willing to pay up to 900 million pounds. With the pound to fall to historic lows against the dollar after the UK referendum on leaving the EU, the acquisition, which had to be negotiated in the last three years, it was completed.

“Although there are still some uncertainties, the pound’s drop to the lowest values ​​of the last three decades against the dollar give us confidence that this transaction will generate long-term value for our customers, partners and shareholders, “admits Adam Aron. The AMC will have saved around € 144 million, benefiting from the devaluation of the pound, reports Reuters.

The Odeon-UCI does not disclose in their accounts the weight of the Portuguese market in revenue, but the last 12 months until March 31, the company earned globally over a billion euros, according to data disclosed by companies

in March accounts, the Odeon. – UCI gave growths account the level of sales tickets as well as plans for the next four years to open 20 new theaters in markets such as the UK, Germany and Italy.

plans is not known if it will keep given the shareholder change. But the Odeon-UCI AMC expects a “public increase and billing.” As? Through “. Introduction of recognized strategies costumer experience will be given priority to the growth initiatives of the AMC, the introduction of reclining seats, a better offer food & amp; beverage, and higher auditoriums large format”.

The AMC has renewed some of its cinemas with reclining seats, recording a 75% increase in the number of spectators at these locations. Strategy that wants to apply to the halls of Odeon-UCI.