German media mogul Dr Herbert Kloiber, owner of Tele München Group (TMG), is set to sell his majority stake in multiplex cinema operator CinemaxX for €147m (US$180m).
The deal will see Kloiber offload his 84.6% share to UK-based cinema chain Vue Entertainment, which will then assimilate CinemaxX into its business to create one of Europe’s largest multiplex cinema operations.
CinemaxX’s shareholders have been offered €6.45 a share. Kloiber, who acquired his stake eight years ago, is backing the deal, which is subject to German merger control clearance.
The news comes after TMG said in May its earnings before interest, tax, depreciation and amortisation (EBITDA) were the third highest in company’s 42-year history, though it didn’t provide a net profit figure.
Speaking to C21 this morning, Kloiber said there were no immediate plans to invest the CinemaxX windfall in TMG, whose credits include the series Moby Dick, Flashpoint and Thorn.