Published:
01-Oct-07
The leading cinema chain in Australia and New Zealand has been acquired by private equity firm Pacific Equity Partners in a deal worth more than A$440m ($382m). As well as 49 Hoyts cinemas, the deal also includes control of cinema advertising group Val Morgan, which programmes advertising for 2,000 screens. The stake was jointly owned by Publishing & Broadcasting (PBL) and West Australian Newspapers Holdings (WANH) and divestment forms part of a wider strategy on part of PBL, of its media assests. Other media enterprises sold off in recent months include the Nine TV network and publisher, which was acquired by CVC Asia Pacific for A$429m.
Our take...
While Hoyts is the leading cinema chain with 341 screens and a further 48 in New Zealand, the two other major stakeholders in the Australian exhibition sector, Amalgamated Holdings (AH) and Village Roadshow (VR) have extensive joint-venture cinema interests together. AH, the owner of the Greater Union and BCC cinema chains recently sold its 50 per cent stake in Roadshow Distributors to its local partner VR in order to refocus investment in core business areas. The deal will reportedly not impact on their strategic relationship in the exhibition sector. Village has also implemented a strategy of divesting its international media assets, including the sale of its stake in SkyCity cinemas in New Zealand last year.
Australia,
