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Cinemark sells Mexican unit to Cinemex

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(Globalpost/GlobalPost)

Mexico City, Feb 19 (EFE).- U.S.-based Cinemark Holdings, which operates 5,207 screens at 461 movie theaters in the United States and across Latin America, said it planned to sell its Mexican unit to Cinemex.

Cinemark's Mexican subsidiary operates 290 screens at 31 movie theaters.

"Cinemark will sell all of the issued and outstanding shares of capital stock of Cinemark de Mexico S.A. de C.V. and its subsidiaries to Grupo Cinemex, S.A. de C.V. and Cadena Mexicana de Exhibicion, S.A. de C.V. ("Cinemex")," the Plano, Texas-based company said in a statement.

The giant movie theater chain, however, did not reveal the value of the deal.

The acquisition will strengthen Cinemex, which has been battling Cinepolis, the operator of about 3,000 screens in Mexico, the United States and Latin America, in the Mexican market.

"This transaction allows us the opportunity to provide greater focus on the growth of our remaining Latin American operations located throughout Central and South America," Cinemark CEO Tim Warner said.

Cinemex, a unit of Grupo Mexico, said it was "eager to complete the transaction and begin integrating Cinemark's high quality theatres and employees into the Cinemex circuit."

The deal is subject to approval by the Federal Competition Commission, or CFC.

http://www.globalpost.com/dispatch/taxonomy/term/35779/130226/cinemark-sells-mexican-unit-cinemex