Sale of Video and DVD rental and sale operations in Israel (30 October 2008)
The Board of Managing Directors of Cinema City International N.V. with its corporate seat in Amsterdam, the Netherlands (the "Company") would like to announce that the Company decided to sell its Video and DVD rental and sale operations in Israel. Those operations are carried out through the Company’s indirect Israeli subsidiary Ya’af-Giant Video Library Network Limited, which has a 50% interest in a joint venture with Israeli Blockbuster® franchisee.
To that effect Ya’af-Giant Video Library Network Limited together with its JV partner, and NMC-Untied (the purchaser) entered into a conditional purchase agreement relating to the sale of the JV activities. The total consideration for the activities is NIS 6.8 million (approximately EUR 1.4 million).
The purchase agreement is subject to conditions precedent standard for transaction of this type.
Upon closing the transaction, the Company will not hold interest in a joint venture with Israeli Blockbuster® franchisee, and will end its Video and DVD rental and sale operations.
In 2007 and in a period of six months enduing on 30 June 2008 the Video and DVD rental and sale operations in Israel generated, respectively, 2.4 per cent and 1.9 per cent of the Company’s revenues.