Amalgamated Holdings to Purchase Sky City Cinema

Submitted by Jim Thesiger on 25 November, 2009 - 04:33

Amalgamated Holdings (AHD), an Australia based company which primarily focuses on the entertainment, leisure, tourism and hospitality industry has agreed to purchase the New Zealand based Sky City Cinema business in exchange of $47.3 billion in an attempt to step up its efforts to get into a stronger position in the entertainment sector in Tasman. David Seargeant, the managing director of the company claimed that the Sky City Cinema business is a perfect fit for its present portfolio. It is to be mentioned that the company is a prime shareholder in the Village Roadshow group and running join ventures with Europe and Middle East cinema groups as well. Sky City, the New Zealand based company stated that it is selling the cinema division which it wrote down in value by $60 million in the previous financial year as the company is planning to concentrate on its core operations.

According to Amalgamated Holdings, the business was one of the leading cinema circuits in New Zealand which has a significant market share in the total box office revenue of New Zealand. The operation included interests in Rialto Cinemas in New Zealand (16 screens), Sky City Cinemas Fiji (10 screens) and 14 cinemas (106 screens) all over New Zealand. The agreement is expected to be completed by February which is subjected to due diligence. Mr. Seargeant mentioned that the acquisition, which follows the recent $107 million capital raising of the group took its total number of screens to more than 1300 all over the globe. He termed this investment as an additional one to the longstanding investment of his company in the hotel industry of New Zealand.

It is to be mentioned that the purchase does not include the half share of Sky City in the ticketing software and sales and support provider Vista Entertainment Solutions and the land, buildings and cash deposits.