The Carnival Group, which runs cinema exhibition business under the brand Carnival Cinemas, has entered into a definitive agreement with Elan Group to acquire its 100 per cent stake in Novo Cinemas United Arab Emirates and the Kingdom of Bahrain. Carnival Cinemas has operations in India and Singapore and the United Arab Emirates.
Novo Cinemas currently operates 104 screens with over 16,000 seats across 10 properties in the United Arab Emirates and Kingdom of Bahrain and has planned expansions of over 50 additional screens over the next few years.
Shrikant Bhasi, chairman and founder of Carnival Group said, “We are the fastest growing multiplex chain in India and Singapore and are strengthening our foothold globally. Our international expansion is a necessity for us at a cultural level. We are now entering into Middle Eastern countries with this deal to explore new market opportunities. The relevance of big-screen experience still remains undeniable in any country and we will adopt our learnings from this acquisition in other markets further enhance customer experience”.
The transaction is subject to applicable regulatory and statutory approvals and customary closing conditions.
Ernst & Young was the exclusive financial advisor on the transaction. Eversheds Sutherland L.L.P. and Hadef & Partners were the legal advisor to Elan Group and Carnival Group respectively.
Elan Group, established in 2004, is a diversified conglomerate offering media, urban city beautification and entertainment services throughout the Middle East. The Company entertainment division owns and operates Gulf Film (one of the largest film distribution companies) and Novo Cinemas in the Gulf Cooperation Council.