Cinemark Says Mexican Government Blocks Sale of Theaters ThereRob Golum
Cinemark Holdings Inc., 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.