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UK cinema chain Vue is showcasing potential sale for later this year: Sky News
Posted on Monday, 08 July 2019 13:47
Vue International, one of the UK’s leading cinema chains, is getting its popcorn ready as it prepares to conduct a sales plan in the third quarter of 2019, Sky News reported, citing city sources.
According to these insiders, the company is going against the general rule of the cinema and is switching on its mobile phone to receive offers for the entire business, which may come from Mexican and South Korean rivals, as well as financial investors.
Vue is aiming for a valuation of more than GBP 2.00 billion, Sky News observed, adding that JPMorgan has been appointed to advise the business on the auction.
The group, which is billed as the UK’s third-largest cinema chain, behind Odeon and Cineworld, is 26.0 per cent owned by its management, with the broadcaster noting a sale could be worth as much as GBP 500.00 million.
Alberta Investment Management and Ontario Municipal Employees Retirement System each control 37.0 per cent of Vue and could both get GBP 800.00 million apiece for their shares, the sources said.
The company has over 230 sites and 2,006 screens globally, 900 of which are in the UK, while also having a presence in Germany, Italy, Poland and Taiwan.
Last month, Vue completed a GBP 813.00 million debt refinancing.
In the three months ended 28th February 2019, the group generated revenue of GBP 220.96 million, down 10.3 per cent from GBP 246.31 million in the corresponding period of 2018.
The group also recorded a net loss of GBP 5.33 million in Q1 2019, with Sky News noting that cinema operators have been struggling with competition from streaming services such as Netflix.
Vue reportedly began exploring a sale in 2017, when the Sunday Times suggested it would put itself up for sale within 12 months.
In addition, there have been rumours that the business is also considering a stock market flotation; however, Sky News’ sources believe this plan has been completely scrapped.
© Zephus Ltd