South Korea’s top exhibitor CJ CGV will sell its 25% stake in CJ Vietnam, CJ’s Vietnamese true estate investment unit, on Jul. 3.
The switch is will shore up CGV’s balance sheet which has been badly hit by coronavirus closure of its cinemas. CGV’s debt to equity ratio elevated by nearly threefold to 845% within the most major quarter of 2020.
In accordance with the chronicle published on Korea’s Nationwide Monetary Supervisory Provider, the stake will be offered for spherical $26.8 million (KRW 32.42 billion). The property subsidiary is currently jointly owned by: CH Holdings; CJ team’s entertainment unit CJ ENM; CJ Logistics; and CJ CGV, with each and each retaining 25% stakes. Necessary functions of the transaction hold no longer been totally disclosed, but it has been reported that the stake will be purchased by a host of elements of the CJ empire, presumably CJ Logistics.
“CJ Vietnam owns and constructs spot of work buildings and a host of properties in Vietnam. Selling our stake within the unit would now not mean withdrawal of our cinema industry in Vietnam,” acknowledged CGV’s spokesperson.
CJ CGV entered Vietnam in 2011 when it received local cinema chain Superstar. The firm is now the glorious movie exhibitor in Vietnam, having also developed its like theaters. It currently operates 488 displays within the nation, and in 2019 offered over 20 million tickets.
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