Times Media Group is set to offload its 51% shareholding in Monte Cinemas to Tsogo Sun Casinos for R20 million.
In addition to the Monte Disposal, the company, through its wholly-owned subsidiary Avusa Entertainment Investments, is also in the process of disposing of Nu Metro Cinemas.
The Monte Disposal does not form part of the disposal of Nu Metro Cinemas, Times Media pointed out.
“Monte Cinemas provide film entertainment and related services to the South African market and as such, is not aligned to TMG’s core businesses – being media and retail solutions,” TMG said.
The proceeds of the Monte Disposal will be used to reduce gearing and for potential future acquisitions more aligned to TMG’s core business, it said.
Times Media will continue to manage the business operated by Monte Cinemas following the conclusion of the sale and will grant to Monte Cinemas a non-exclusive, royalty-free licence to use the “Nu Metro” trade mark.
In addition to the Monte disposal, Times Media has also disposed of its 50% shareholding in Three Groups Cinemas (Suncoast Cinemas) to Whitehorse Investments and Avalon Three Groups Investments, the other shareholders of Suncoast Cinemas in equal shares for a total consideration of R17 million.