Warner confirms sale of multiplex trio

Written by Patrick Frater

Thursday, 01 March 2007

Story Categories: China, Film, Hollywood In Asia, regulation, Warner,

HONG KONG -- China Film Group Thursday confirmed that it will take outright control of three mainland Chinese multiplexes previously jointly owned by Warner Bros Int'l Cinemas and SZITIC Commercial Property Co. (Variety Asia, Jan 9, 2007.)

Deal follows announcement in November that WBIC would sell its complexes in China. Warner blamed decision on a regulatory change that prevented it from achieving majority ownership of its Chinese theaters.

Cinemas concerned by the sale include the Warner-branded 'plexes in Chongqing, Changsha and Nanchang. Value of the transaction was not disclosed.

WBIC has three other complexes in China under different joint ventures.

"WBIC has achieved good results in the past years. By taking over the Warner-SZITIC cinemas, China Film Group has shown our commitment and confidence to continue developing the Chinese cinema market. We will do our best to contribute to the prosperity of China film market," Han Xiaoli, the newly promoted General Manager from CFG, said. "Warner Bros. remains committed to its other businesses in China, including local language film production, a home video joint venture, consumer products and studio stores all of which have different legal structures, business models and regulatory requirements," Warner said in a written statement.
© Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

Bookmark with..

Comments (0) add comment