Warsaw Stock Exchange-listed Cinema City International signed a preliminary agreement to sell its movie theater business to UK sector firm Cineworld Group, the company said in a statement on Friday.
Cinema City agreed to transfer the business to Cinema City Holding B.V., which will be sold to Cineworld. In exchange, it will receive ₤272 million in cash and a 24.9 percent stake in the buyer company.
Upon the deal’s closing, Cinema City is entitled to about €14.5 million in cash plus and earnings consideration of €25.9 million, if the closing takes place in February, and of €28.9 million, if it takes place in March or later.
The transaction is subject to approval from the companies’ governance bodies and from the Office of Competition and Consumer Protection.
Cinema City International is the largest movie theater operator in Central and Eastern Europe. It has 99 multiplex cinemas in Poland, the Czech Republic, Slovakia, Hungary, Romania, Bulgaria and Israel.
After the deal is completed it will continue to be traded on Warsaw Stock Exchange. Cinema City will keep its real estate assets and lease it back to Cineworld.