TMG offloads Nu Metro Cinema

Times Media Group has concluded the disposal of its Nu Metro Cinema division to Subcocept, a purpose built company funded by private equity company, One Fifty Capital.

The media group has also offloaded its associated cinema advertising business Popcorn Cinema Advertising Sales, a Division of TMG, and Avusa Entertainment Investments.

TMG will dispose of 100% of Nu Metro and Popcorn Advertising for a purchase consideration of R75 million payable in cash.

One Fifty Capital is an independent private equity firm providing capital for small to medium start-up enterprises in the property, education, entertainment and gaming industries with offices in KwaZulu-Natal, South Africa and Nicosia, Cyprus.

As part of TMG´s turnaround strategy, it has specifically decided to exit non-core businesses identified within TMG, including Nu Metro, the 2nd largest cinema operator in Southern Africa, operating 17 cinema complexes with 162 screens.

The proceeds of the Disposal will be used to reduce acquisition leverage with respect to future acquisitions more aligned to TMG´s core business, the group said.

TMG has also sold a 51% shareholding in Monte Cinemas to Tsogo Sun Casinos for R20 million cash; and 50% shareholding in Three Groups Cinemas to Whitehorse Investments and Avalon Three Groups Investments for R18 million in cash.

Accordingly the total sale proceeds for the entire TMG cinema assets as described above amounts to R113 million.

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TMG offloads Nu Metro Cinema