This information is disclosed in accordance with the Securities Markets Act, the Financial Instruments Trading Act or demands made in the exchange rules.
Ratos has concluded an agreement to acquire 100% of the shares in the Finnish movie theatre group FinnkinoOy from the media group Sanoma. The purchase price (Enterprise Value) amounts to approximately EUR 94.3m1) of which Ratos will provide equity of approximately EUR 50m.
FinnkinoOy is the largest movie theatre chain in Finland and the Baltic countries with 25 movie theatres and 161 screens with a total of approximately 30,000 seats. The company also conducts film distribution and some distribution of DVDs and video films. The movie theatre operations are conducted under the name Finnkino in Finland and Forum Cinemas in the Baltic countries.
Movie-going in Finland and the Baltic countries has seen growth in recent years, mainly due to building new movie theatres with a number of screens, known as the multiplex concept, as well as digital and 3D technology which have enhanced the film going experience. In addition to ticket revenues, sales of snacks, sweets and soft drinks, as well as advertising, are significant sources of income. Finnkino has 620 employees and in 2010 sales totalled EUR 88.6m with an operating profit (EBITA) of EUR 8.5m. The number of admissions in Finnkino's cinemas amounted to 9.9 million in 2010. The head office is in Vanda in Finland.
"The movie theatre market is showing positive development in the Nordic region. Since the end of the 1990s, Finnkino has renewed the Finnish and Baltic cinema market by building modern and attractive movie theatres. Admissions numbers per capita are still lower compared with the other Nordic countries, but with continued investments in new movie theatres and technology, both the number of visitors and revenue per visitor are expected to rise," says Ratos's CEO Arne Karlsson.
Ratos's holding will amount to 100%. The purchase price for the acquisition (Enterprise Value) amounts to approximately EUR 94.3m1), of which Ratos will provide approximately EUR 50m in equity. The acquisition is subject to approval from the relevant competition authorities and is expected to be completed in the second quarter of 2011.
For further information, please contact:
Arne Karlsson, CEO, +46 8 700 17 00
Emma Rheborg, Head of Corporate Communications and IR, +46 8 700 17 20
1) In addition there are capitalised rental liabilities of EUR 21.6m.
Financial calendar from Ratos:
|Annual General Meeting 2011
||5 April 2011|
|Interim Report January - March 2011
||5 May 2011|
|Interim Report January - June 2011
||19 August 2011|
|Interim Report January - September 2011
||9 November 2011|