Cinema City vows to develop huge amusement park near Warsaw
January 14, 2014
Warsaw-listed movie operator Cinema City International will use the cash from merging its cinema business with UK-based cinema giant Cineworld for investments, with focus in the first place put on amusement park project, Park of Poland, CCI CFO Nisan Cohen said on Monday.
"The cash that will stay in Cinema City will be used to finance the development of other projects," Cohen said.
The first project CCI will work on is a theme park, Park of Poland, the CFO said. CCI has set up a company Global Parks Poland for this purpose.
"The first concrete project is Park of Poland. We hope we will be able to present our plans regarding the first stage of this investment mid-year," he said.
Under the plan, initially, the Park of Poland would be situated on the area of 250 hectares in the village of Wręcza near Mszczonów, some 45 kilometers from Warsaw. It would comprise an amusement park, water park and roller coasters. Later on it would be extended by new facilities to eventually become the second biggest theme park in Europe after France’s Disneyland.
"In the future we might also consider involvement in other entertainment and real estate projects which could bring value to our shareholders," Cohen also said.
On Friday CCI said it agreed to sell its cinema business to Cineworld Group in a cash and equity deal valuing the enterprise at some GBP 503 million.
As payment for the cinema operations, CCI will receive GBP 272 million in cash (decreased by the value of CCI's all debts estimated at GBP 169 million) and a 24.9% stake in Cineworld's increased share capital, the Friday filing read. Following the deal's completion CCI will additionally receive EUR 14.5 million in cash and, depending on the timing of the deal's completion, an earnings consideration of EUR 25.9-28.9 million.