Bloomberg News

Cinemark Says Mexican Government Blocks Sale of Theaters There

August 10, 2013

Cinemark Holdings Inc. (CNK:US), the second-largest publicly traded U.S. theater operator, said Mexico’s Federal Competition Commission voted to block the sale of its cinemas in that country.

The commission voted 3-2 to block the sale to Grupo Cinemex SA and Cadena Mexicana de Exhibicion SA, Cinemark said yesterday in a statement.

The deal, announced in February, involved 31 theaters with 290 screens, according to a statement at the time. For the 12 months ended Sept. 30, they generated revenue of $73.7 million and adjusted earnings before interest, taxes, depreciation and amortization of $16.3 million.

The U.S. exhibitor, based in Plano, Texas, said it plans to appeal the ruling and will continue to evaluate alternatives.

Cinemark rose 0.5 percent to $31.49 at yesterday’s close in New York and has gained 21 percent this year.

To contact the reporter on this story: Rob Golum in Los Angeles at rgolum@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net


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Companies Mentioned

  • CNK
    (Cinemark Holdings Inc)
    • $32.8 USD
    • -0.35
    • -1.07%
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