Alexander Mamut buys the second largest cinema chain in Russia called “Formula Kino”. Billionaire’s A&NN Investments has acquired majority stake in the chain from A1 of Alfa Group. According to A1 message – 75% went to the “strategic investor”. The remaining 25% of the company belong to the founder Vladimir Zakharov with whom A&NN Investments are also negotiating, and the deal can be closed within a month.
“The deal fully corresponds to the A1 strategy — buying at a discount because of difficult financial situation of a target company, increasing the value of an asset through optimization of corporate governance, creating an industry leader, selling to a strategic investor, — stated in the message of the investment group. – We are satisfied with the terms of the transaction and the financial outcome.”
A1 became the owner of 75% of “Formula Kino” in 2012 and in 2013 merged it with another movie theater chain called “Kronverk”. According to A1, in the first year after the merger the EBITDA growth exceeded 40%, net profit increased more than 2 times. “Formula Kino” 2016 revenue amounted to about 6 billion rubles. (for comparison, in 2012, 5.1 billion rubles.)