Cinemark sells Mexican unit to Cinemex
Cinemark Holdings, Inc., one of the largest motion picture exhibitors in the world, today announced that they have entered into a stock purchase agreement pursuant to which 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).
Cinemark's Mexican subsidiary operates 290 screens at 31 movie theaters.
The deal, which requires approval from antitrust regulators, would leave Mexico with just two major players in the exhibition market: Cinemex and market leader Cinepolis.
Cinemark said its Mexico theaters pulled in about $74 million in revenue last year.
Cinemark will continue operations elsewhere in Latin America. "This transaction allows us to provide greater focus on the growth of our remaining Latin American operations located throughout Central and South America," Cinemark CEO Tim Warner said.
GM Entretenimiento de Mexico, owned by Mexican mining magnate German Larrea, acquired Cinemex from AMC Entertainment in 2008 for an estimated $315 million. Then it merged its theater chain MM Cinemas with Cinemex and kept the Cinemex name. Last year, Cinemex purchased art-house circuit Cinemas Lumiere.
Indie theaters and family-run chains have a mere 3 percent of the overall market share in Mexico.
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