This was announced on Film Business
On July 12th , representative of CJ-CGV confirmed the deal with
With its investment, CJ-CVJ will hold 92 percent of the total share of the
|A Megasta cinema|
Brian Hall, chief of the Executive Board of Megastar said the acquisition would be completed in one month and Megastar had been looking forward to be a part of CJ-CVG, one of the most prestigious distributors in the world. CJ-CVG is now controlling 30% of the movie market of
CJ-CVG’s latest action is considered part of its plan for international expansion which already included opening a small multiplex in
Other shares of the cinema chain ( 20%) are being held by local Vietnamese publisher Phuong Nam Culture Corporation.
Phan Thi Le, head of Phuong Nam Publisher said the purchase would not affect its capital structure and capital contribution ratio to Megastar.
“Investment to Megastar is an important step of CJ-CVG’s global strategy,” Le said. “We think this is a chance for Megastar to be financially capable of developing its business more in
After launching its first cinema in
Holding a total asset of US$ 38 million and taking up 60 percent of the total box office revenue in
When the deal is closed, most of
Although the Vietnamese film industry suffered from a recession during the 1980s and 90s when Vietnamese stopped going to the cinemas, it has recovered substantially with an annual growth rate of 20 percent.
According to Film Business Asia, the movie market in
Last year Megastar was accused of unfair competition in movies industry by 6 Vietnamese film companies but the lawsuit has not been brought to the trial yet.