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Hamburg (ots Ad hoc-Service) -
- Cinema market leader announces capital increase - Senator Film
acquires 25% plus 1 share shareholding
Hamburg, April 19, 2000 Germany's cinema market leader, the
Hamburg-based CinemaxX AG, is to take over the operative running of
Ufa Theater GmbH & Co. KG on the basis of a management agreement.
CinemaxX AG simultaneously announces a capital increase of just under
10%, as a result of which Senator Film AG, Berlin, is receiving the
option to acquire a more than 25% stake in CinemaxX.
The agreement with Ufa envisages CinemaxX taking an equity stake
and receiving the option to acquire further shares. On the basis of a
management agreement (agency agreement), CinemaxX is to assume
responsibility for the operative running of all cinemas within the
Ufa Group. Subject to official approval from both sides, the
agreement is expected to take effect on May 1, 2000 and will run for
an initial five years, with an option to extend.
CinemaxX Board Chairman Hans-Joachim Flebbe emphasised that the
agency agreement that has now been concluded brings CinemaxX broad
scope for value-enhancing earning: in addition to effectively
extending its market lead, the agreement strengthens the company's
position to acquire and keep customers in the regions, optimises its
siting policy for Germany and offers improved potential margins as a
result of more advantageous purchasing terms. The group that has now
been created offers the advertising and consumer goods industries
"very attractive prospects for national alliances and partnerships" -
in other words, direct access to the 35 million people who visit
these cinemas this year in Germany alone.
CinemaxX AG's agreement simultaneously opens up scope for far-
reaching synergy benefits that will cut operating costs. One example
given by CinemaxX Finance Director Michael Pawlowski was the
optimisation of administrative expenses and lower marketing costs.
Where there is duplication of facilities, capacity utilisation of
both companies' multiplexes can be maximised through improved
coordination, coupled with the closure of commercially unprofitable
The partnership agreement with the Ufa Group is resulting in
Germany's largest cinema group, with overall potential sales of some
DM 500 million (1999). In 1999, both companies combined registered
around 30 million visitors. They currently have 623 screens in 54
locations. CinemaxX AG will decisively build on its market lead in
Germany, boosting its share of the overall cinema market from a
current 12 % to 20 %.
Capital increase by CinemaxX AG CinemaxX AG simultaneously
announces a capital increase involving the issue of 1,080,000
individual share certificates. Further details, such as the issue
price and the time scale of the capital increase, will shortly be
approved and announced by the Supervisory Board of CinemaxX AG.
The objective of the capital measure is to accelerate the
expansion throughout Europe of the cinema market leader, the
development of new business areas and sources of value creation, new
strategic alliances or media and brand partnerships, and measures
aimed at consolidating the cinema market.
Senator Film acquires interest in CinemaxX In conjunction with the
capital increase. Senator Film is to acquire a more than 25% interest
in CinemaxX. The company is to acquire blocks of shares from the two
main shareholders, family Flebbe and Kinopolis Group N. V., and will
in addition be granted the right by both partners to subscribe to the
new shares being issued. On the basis of this agreement, Senator can
increase its interest in CinemaxX AG to a total of more than 25%.
Senator Film is one of Germany's leading entertainment companies.
Its activities focus on film production, film distribution and
licence trading, and it covers a considerable portion of the value
creation chain in these market segments through own and bought-in
"The new partnership gives both companies involved the incentive
and opportunity actively to steer the value creation chain via media
and commerce, a capability that is becoming increasingly important in
the case of films," stressed CinemaxX Board Chairman Flebbe. He also
expressed the expectation that this partnership will yield direct
synergy benefits for all key business areas in the field of film
The boards of both companies are to announce further details at a
press conference and at the DVFA event which will follow it, today in
Ernst-Gunter Surkus, Investor Relations, Tel. +49-40-45068-120
Thomas Schulz, Press, Tel. +49-40-45068-181
End of message
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