CJ CGV, Korea’s largest multiplex cinema exhibitor, is considering buying UK-headquartered cinema chain Vue International in a deal that could be worth 2.9 trillion won (US$2.67 billion), according to news reports on Nov. 28.
CJ CGV is likely to form a consortium with financial investors for the big-ticket acquisition, which will give the Korean company control 212 cinema screens in the UK and Europe, as well as one in Taiwan, the Bell reported.
Canadian pension funds, including the Ontario Municipal Employees Retirement System and Alberta Investment Management Corporation, have ownership stake in Vue. The UK cinema operator logged a loss of 103.2 million pounds (US$137.56 million) in 2016.
If successful, the takeover will accelerate CJ CGV’s global expansion push to operate 10,000 screens worldwide by 2020, following a slew of deals to advance into markets in China, the US, Vietnam, Indonesia, Myanmar and Turkey.
The latest such move by the firm was a contract with Russian land developer ADG Group in October to set up a joint venture to run 33 theaters and 160 screens in Moscow in three years.
By Park Han-na (email@example.com