Vue cuts valuation to £650m after July’s restructuring deal
Vue International has cut its valuation to £650m following a £1bn restructuring deal announced last month.
The UK-headquartered cinema chain said in July it was considering a £1bn takeover from lenders which would see its former majority shareholders ousted, the Sunday Times reported.
As part of the takeover, the cinema chain also negotiated its exit from a €129.5m legal claim made by Event Hospitality and Entertainment, owner of German cinemas CineStar.
Vue had initially agreed to take over CineStar in 2018 but the deal was paused after competition concerns arose.
The German company initiated legal proceedings but, following the restructuring, it is understood that Event will be considered as an unsecured creditor and its claims will be written off.
Vue International was bought by Canadian pension funds Alberta Investment Management and Omers in 2013 and in 2019 it was preparing for a £2bn sale when it was hit hard by Covid.
The pandemic forced the cinema owner – which operates in EU nine countries – to furlough thousands of employees.
City A.M. has refused to comment.