We are advising AMC, the world’s largest movie exhibition group, in the sale of Forum Cinemas, which operates nine theatre locations in the Baltic countries. AMC has announced that it has signed a definitive agreement to sell the theatre locations in the Baltic region (Latvia, Lithuania, and Estonia) for €65 million to UP Invest, a local investment company. The agreement calls for AMC to receive approximately half of the sale proceeds on signing and the balance upon closing in each country after antitrust resolution in the coming months.
Action to bolster liquidity
“This transaction marks yet another bold and decisive action taken, on the heels of our capital raising in April and debt restructuring and capital raising in July, to bolster our liquidity and strengthen our balance sheet at a transaction multiple that underscores the inherent value of our theatre portfolio and the resilience of our business,” said Adam Aron, CEO and President of AMC.
“We continue to be encouraged by attendance levels at theatres that have reopened in Europe, where essentially all theatres are open, and in the U.S., where almost 300 theatres are currently open for business. Growing consumer confidence in our cleaning and safety protocols continues to generate increased attendance and food and beverage spend, and we look forward to offering a full slate of new and entertaining film product to further drive attendance over the remainder of 2020.”
Our services and project team
We act as Baltic legal advisor to AMC, having provided support in all stages of the transaction, including transaction structuring and negotiations, due diligence disclosures, antitrust and real estate issues. Our project team is led by partner Toomas Prangli, counsel Lauri Liivat and senior associate Monika Mališauskaitė-Vaupšienė, and includes partners Daivis Švirinas, Kaupo Lepasepp and Ieva Andersone, senior associates Piibe Lehtsaar, Marika Grunte, Lise-Lotte Lääne, Robin Teever, Viktorija Smirnova-Čerkasa, Jonas Kiauleikis, associates Lukas Vaišvila and Vladislav Leiri, of counsel Isabella Barbara Aavik and others.