Pending sale of HOYTS Cinemas now at risk
The pending sale of HOYTS Cinemas may be put on ice, after a Chinese film production and streaming group acquired the majority stake in the cinema chain’s parent company.
Beijing production house China Ruyi has bought 51% of Dailian Wanda Group, who own Wanda Film, China’s largest cinema operator, and HOYTS’ parent company.
China Ruyi bought an initial 49% stake last June, making it the sole owner of the investment group – and the Aussie cinema chain.
Billionaire Wang Jianlin bought HOYTS in 2015 for his Dailian Wanda Group, which has a vast portfolio, including manufacturing, hospitality, real estate, and financial services.
While holding the controlling stake of HOYTS, Jianlin was actively shopping the cinema chain to potential buyers; Pacific Equity Partners reportedly offered just over A$700 million for HOYTS last June. At the time, HOYTS was listed as a $1 billion asset on the books of Wanda Film.
PEP was one of the previous owners of HOYTS, buying the chain in 2007 for A$440 million, and selling to ID Leisure Ventures in 2014, who sold it on the Dailian Wanda Group the following year, for a reported A$1.15 billion.
CEO Damian Keogh told the AFR the company is “aware of Wanda selling down their majority shareholding but understand the deal is still being completed and are yet to engage with the new majority shareholders”.
Mumbrella has reached out to HOYTS for comment.
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