PRESS RELEASE —
LONDON & PLANO, Texas–(BUSINESS WIRE)–Jun. 18, 2018– Cineworld Group, plc (LSE: CINE) and Cinemark Holdings, Inc. (NYSE: CNK) announced today an agreement to acquire the remaining units of National CineMedia, LLC currently owned by AMC Entertainment Holdings, Inc. (NYSE: AMC). The transaction will be financially accretive to each of Cineworld and Cinemark and represents an on-going confidence in the long-term opportunity associated with the cinema advertising business model.
The purchase price for the 21.5 million remaining units is approximately $156.8M, representing a price of $7.30 per unit. Cineworld and Cinemark will each acquire half of the units and will fund the transaction with available cash.
This transaction fulfills AMC’s requirement to sell its interest in NCM under the consent decree with the U.S. Department of Justice in connection with AMC’s acquisition of Carmike Cinemas, Inc. in December 2016.
Mooky Greidinger, Cineworld’s Chief Executive Officer, said, “We are delighted to further strengthen the successful and longstanding partnership between Cinemark, Cineworld and National CineMedia. Our increased investment in NCM also supports our strategy to reinforce our presence in the United States following the recently completed acquisition of Regal Entertainment Group.”
Mark Zoradi, Cinemark’s Chief Executive Officer, stated, “National CineMedia remains an important component of our business model and we are thrilled to have partnered with Cineworld to solidify the strategic ownership of NCM by founding members. We greatly look forward to working even more closely with NCM’s Board of Directors and management team to further enhance and grow the cinema advertising business.”
Andy England, NCM’s Chief Executive Officer, commented, “We value the tremendous vote of confidence demonstrated by Cineworld and Cinemark’s increased investment in our company. We are pleased to deepen the collaboration with two of our founding members on our future business plans and strategies for continued financial growth. In addition, we look forward to continuing to work closely with AMC and servicing their cinema advertising needs under our Exhibitor Service Agreement, which has approximately 19 years remaining.”
Adam Aron, AMC’s Chief Executive Officer and President, remarked, “While AMC will no longer be a shareholder of National CineMedia, we do look forward to our continued close cooperation with NCM in the sale of pre-show onscreen advertising at a majority of AMC’s U.S. theatres.”