Cinema City acquires 7.65% in Ronson. Closing of the share purchase agreement signed in July 2013
Cinema City International NV (“Cinema City”) announces that its subsidiary has closed an agreement for the indirect purchase of 7.65% of shares in Ronson Europe NV (“Ronson”), which has been signed in July 2013. The purchase price in the transaction amounts to PLN 14.6 million. Ronson, a public company listed on the Warsaw Stock Exchange, is a residential developer in Poland operating in midscale segment of residential market in key Polish cities.
“We are very pleased to increase our stake in Ronson Europe, which became expert in development of apartments in Poland. We are proud of the growing scale of this company, its perspectives and business model generating good margins. We appreciate very much the contribution of GE Capital Real Estate made in the past years, which helped Ronson to join the group of top residential developers in Poland.” said Moshe (Mooky) Greidinger CEO of Cinema City International “We continue to go hand-in-hand with U.Dori Group. Together we are going to support Ronson in delivering growth with a number of new projects being developed on an existing land base and on the new plots that become available.”
"This investment shows our belief in the Polish economy and our strong commitment to the real estate development side by side without our entertainment activity".
ITR 2012, a subsidiary of Cinema City, and Dori have jointly acquired 41 800 000 shares in Ronson Europe NV, representing 15.3% of the company’s capital. These shares carry 41 800 000 votes at the General Meeting of Ronson. Post transaction, Cinema City and Dori directly and indirectly control 79.56% of the share capital in Ronson. The total price for the shares paid by ITR 2012 and Dori is approximately PLN 29.2 million, of which ITR 2012 paid an approximate amount of PLN 14.6 million. In the 4th quarter of 2013 Cinema City will recognize the one-time profit from this transaction and onwards it will also be consolidating a higher portion of Ronson’s profits.
Ronson is a well-established residential developer in Poland having commenced operations in 2000. Ronson is focused on mid-class residential projects in Warsaw, Poznań, Wrocław and Szczecin and it is renowned for high quality and sound financial performance generating strong margins when compared with its domestic competition. An adequate mix and size of projects enables accelerated growth of Ronson. The Company is currently offering to clients approximately 900 apartments in 6 ongoing and 8 completed projects. There are 22 future projects in preparation with a total of over 5 000 apartments. The plans for entire 2013 provide for 450- 500 handovers, presale of over 500 apartments, launching two new projects: Tamka and Moko in Warsaw with a total of 255 units and construction works in Warsaw and Szczecin. Ronson has an extensive land base in well selected locations to develop subsequent projects and it currently considers acquisition of new plots supporting the growth of the company in a long term. Ronson is a public company listed on the Warsaw Stock Exchange since 2007.
CINEMA CITY INTERNATIONAL (Cinema City) is the largest multiplex cinema operator in Central & Eastern Europe and in Israel. The Company operates 99 multiplexes with 966 screens, in 7 countries (Poland, the Czech Republic, Hungary, Romania, Bulgaria, Slovakia and Israel). There are 36 more multiplexes under development, which will offer close to 380 new screens. In addition, Cinema City is actively involved in cinema related advertising and film distribution.
In 2012 Cinema City sold 36.3 million tickets in 7 countries, 2.5% more compared to 2011.
The Cinema City group employs over 4,000 people in 7 countries.
For more information, please contact:
Director of Investor Relations, Cinema City International
tel. (+48) 22 566 69 60 / mobile: (+48) 510 024 028
tel. (+48) 22 826 74 18 / mobile : (+48) 500 202 355