Buyout groups circle Vue Entertainment
05 October 2010 09:50
Three private equity bidders have entered the final round of the auction for Vue Entertainment, which operates 68 cinemas across the country. Vue chief executive Tim Richards and deputy chief executive Alan McNair, who together own 51% of the business, are looking for new financial backing to help them acquire one of their two bigger UK rivals – Odeon & UCI or Cineworld.
Odeon & UCI, the market leaders with 204 cinemas across Europe, has been owned by buy-out firm Terra Firma since 2004. Cineworld, which listed in 2007 and is 20% owned by US buyout group Blackstone, operates 78 cinemas across the UK and Ireland.
BC Partners, Doughty Hanson and Omers Private Equity all qualified for the second round of bidding, with offers valuing the chain at £420 million to £480 million. A deal is likely to be completed by the end of the month.
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