And this is not to say that AMC won’t press studios for better terms, but the company will not do so without offering something in return. (source: AMC presentation), So how is AMC planning to increase Odeon & UCI’s revenue given that attendance and screen count is unlikely to grow? The UK is still a big market, but the falling value of the pound translates into lower dollar revenue, even without the uncertainty of Brexit. AMC's $30-per-share offer represented a 19.5% premium to Carmike's shares the day before the proposed announcement, but is still shy of the stock's most recent high of $35, back in August 2014. We should recall that while Odeon & UCI have been capital starved, they do not lack experience in both comfortable seating and dine-in theatres. Step 2 - Claim your tickets. In fact, Aron had been recruited from the hospitality business on the strength of his M&A skills, having engineered the USD $12.2 billion to sell Starwood Hotels, for which he was interim CEO, to Marriott. …as per our statement two weeks back, some Carmike shareholders have an unrealistic view as to Carmike’s value to AMC, and their resulting price expectations are simply beyond what AMC believes is prudent to pay. Given that 75% of the deal is cash, the exchange rate is an important factor. After proposing a merger with Carmike Cinemas (NASDAQ: CKEC) back in March, AMC today announced an agreement to purchase Europe's largest theater chain, Odeon & UCI Cinemas Group. Vue had the option to buy Odeon & UCI and it didn’t. I bought the odeon deal earlier in the year (5 for £20) and had to input the groupon code to a website to get the 5 odeon codes. The geometry can be modeled in many different 3D programs. Completed in 2015, the Tour Odeon is the tallest building in Monaco, with its 170 meters high. To qualify, you’ll have to: Purchase an insurance policy (car, van, motorcycle, contents/buildings, pet, life, business, landlord or travel insurance) or; AMC doesn’t need to raise cash for that part of the deal, but the seller, Terra Firma, gets the liquidity they are looking for (albeit subject to a lock up period, not disclosed how long). He is also the founder and president of Concinnus Financial, a Registered Investment Advisor based in Spokane, WA. AMC has not gone into great detail about this (yet), though it did so for its proposed domestic acquisition. But what about Australia’s Hoyts you might ask? If the deal goes through, the purchase will be valued at about $1.2 billion. Company management thinks revenue can be increased by introducing things like reclining seats and premium food and beverage concessions, initiatives that have boosted AMC's U.S. revenue in recent years despite slow growth in ticket sales. Most notable in the conversation has been investment advisor Mittleman Brothers LLC's call to fellow Carmike shareholders to reject the offer, claiming that a fair valuation would be at least $40 per share. Mexico’s Cinépolis would happily have cherry picked Odeon’s Cinesa screens in Spain and Portugal to consolidate its European foothold achieved through buying Spain’s Yelmo, but this was clearly not an option for Odeon & UCI. It’s not as clean an advantage or means of producing leverage and Odeon has already done the heavy lifting of streamlining seven individual country operations into one pan-European operation with local flavours. Stifel analyst Benjamin Mogil said in a client note that AMC’s plans to invest in the chain were relatively detailed, including $250 million to $350 million in investments … As one industry financial expert reviewing both Wanda and AMC told us upon news of the Odeon acquisition being made public: Wanda’s greater voting power comes from a dual class structure. Wanda is thus likely to still own more than 73% of the total shares and 89% of the voting power after the close of this deal. Did AMC get a good price for Odeon & UCI? We were serious. AMC CEO Adam Aron should also not be seen as Wang Jianlin’s hand puppet. Tour Odeon: the highest in Monaco. The real impetus to act now lies with Carmike shareholders. Oh, and check the EBITDA multiplier on the Odeon deal and you’ll see it’s similar to what we offered you.”. Data sources: AMC Entertainment, Odeon & UCI. Odeon Cinemas is known for its iSENSE and state-of-the-art IMAX. The building was completed in 161 AD and destroyed in 267 AD. Valuation of Odeon, Cineworld, Kinepolis valuation. The Carmike acquisition is an all cash offer and so isn’t going to dilute Wanda. Odeon seems to be reluctant in giving out or sharing any specials deals for their food and drinks. Aside from the delicious food and drinks that Odeon offers, they provide ample parking spaces for their customers to make it more convenient for them. But it is clear that Aron was brought in to replace former AMC CEO Gerry Lopez with a clear mandate to grow aggressively through acquisition. AMC entered a definitive agreement to purchase London-based cinema chain Odeon & UCI from private equity firm Terra Firma. Carmike shareholders will need to decide if $30 per share is acceptable, or if life post-AMC-breakup is an acceptable scenario. This is unlike the Carmike deal in which all the US regulations surrounding film rental are the same currently adhered to by AMC. Let us break down the terms of the deal, not least the critical fact that more money will need to be spent than the sale price to make Odeon & UCI healthy for the future. There is potentially a lot to lose in the short term when they vote on the deal, especially considering the $25-per-share valuation before AMC's offer arrived. AMC would add the 242 locations and 2,236 screens in the seven European countries that Odeon & UCI operates in. Privacy - Legal information More local investments by the council include the purchase of the Fleet Walk shopping centre in Torquay town centre for an estimated £18million, and … Odeon Seating will be numbered and showing times staggered to ensure social distancing is met, while contactless methods are in place and cash no longer accepted. The immediate good news is that the company will not be split up. This video will be comparing the new Odeon pm vs mm . As Mr. Aron of AMC put it, “We’re certainly not going to be the last [major acquisition]. These terms mean AMC is getting a good deal, in what the company’s CEO and President, Adam Aron, admitted was an “opportunistic transaction,” representing “a once-in-a-generation opportunity to acquire Europe’s leading cinema chain and create the world’s biggest and best theatre operator.” But the acquisition is also good for Odeon & UCI, though less so for the seller, Guy Hands’ Terra Firma. So why is this a good deal for Odeon? AMC CEO Adam Aron stated that, in spite of Brexit-related uncertainties, the deal was an "opportunistic transaction." The purchase also diversifies AMC's business, making it a multinational organization operating in the U.K., Ireland, and mainland Europe. If ever there was an opportunity to undertake such initiatives, now is the time, especially given both Odeon and AMC have ‘unlimited moviegoing’ schemes in place that, coupled with Big Data, could be a major boost. The UK/Ireland Odeon operation won’t be separated from the European UCI operation. Yes, yes and emphatically yes. Voucher codes cannot be redeemed at ticket machines but tickets can be collected at ticket machines if … South Korea’s CJ CGV had to get a co-financier onboard to buy Turkey’s Mars for USD $800 million. To say that the people at Odeon & UCI are happy about the deal would be an under statement. We similarly will be focused on retaining Carmike’s lower cost structure at theaters with lower visitation. Cheap Odeon cinema ticket deals and offers. That isn't to say, though, that the merger isn't at risk. Winter months (November 1 to March 31) 8am to 5pm. From what I can gather, the Class B shares that Wanda holds get 3 votes per share compared to only 1 vote per share for the Class A common stock, so Wanda can retain control even if its shareholding falls below 50%. Odeon Film AG operates as an independent production company for television (TV) and cinema. Cumulative Growth of a $10,000 Investment in Stock Advisor, What Investors Need to Know About AMC's Purchase of Odeon & UCI @themotleyfool #stocks $AMC, Why AMC Entertainment Stock Jumped Monday, AMC Entertainment Could Go "Sharply Higher" as Analyst Hikes Price Target to $16, Why AMC Entertainment Stock Jumped Again Friday, AMC Entertainment Raises $428 Million From Stock Issue, Copyright, Trademark and Patent Information. That said, there is still a reason Odeon & UCI is valued at a lower multiple than Cineworld and Kinepolis. I've just bought the 3 for £12 deal and have the groupon voucher but can't find how to redeem this for the 3 odeon codes. Now with more than 120 cinemas and over 950 screens in the UK & Ireland, ODEON is the leading exhibitor, committed to investing in cutting edge technology and comfort to create the ultimate experience for our guests – from luxury reclining seats and immersive screens with premium sight and sound, to our delicious food and beverage offers. We will be laser-like in our pursuit of cost synergies, whether that be film exhibition expense, concessions, operating, G&A (general and administrative), overhead costs, you name it. There are major differences between the US and UK cinemas markets, even more so when it comes to the many European cinema markets. The combined Odeon & UCI EBITDA rose 85% in the period 2014 to 2015, on just under 20% revenue growth, pointing to a positive trend that went above and beyond just a strong year at the box office. We’re motley! On the same day as announcing the Odeon & UCI acquisition, AMC also issued a separate statement affirming that it “remains committed to moving forward” with the Carmike deal, but darkly warning “the likelihood of an AMC/Carmike transaction continues to be at considerable risk.”. With the U.K.'s decision to leave the European Union still fresh, this move is a bold one for AMC. Even without counting in the Wanda-Hoyts screens, and whether or not the Carmike vote this Friday goes in AMC’s favour, the acquisition will create the world’s biggest cinema chain. News: Aaron told investors Tuesday that the company has already identified 50 Odeon and UCI theaters “ripe for an AMC-style overhaul” that would include such improvements as better food offerings and reclining seats. “The Pound is just dirt cheap. By focusing on what has been a success in its home market: specifically re-seating auditoriums, outfitting theatres with recliner chairs as well as an expanded focus on food and beverage options. (source: AMC presentation). By submitting this information you agree to receive e-mails regarding real estate properties offered by the C.I.M. But don’t feel too sorry for Vue, who has had a good rummage through Odeon’s corporate underwear drawer and will use this knowledge to its advantage in the coming years. It is also important to remember that GBP £921 million (USD $1.199 billion) is not the price being paid but the valuation of the deal. Why? Current shareholders should also adopt a "wait and see" approach in the weeks to come. There will be a concerted effort by the likes of CGV, Cinépolis, Cinemark, Cineworld and Vue to hit the magic 10,000 screens mark, but given factors such as high valuations of Indian circuits and emerging markets already being ‘colonised’ (for lack of a better word), there is less and less room for manoeuvre. (Source: AMC Theatres). Rumour has it that the final competition for Odeon came down to AMC and Vue, a scenario in which AMC had more to gain. Last entrance 6:30pm. Wanda had previously denied that it was looking to buy Odeon and technically this is true, since it is Wanda’s American subsidiary that is making the purchase. Box Office Redemption: To use your ODEON voucher code to purchase your ODEON ticket at the box office, print this email including your voucher code and give this to the cinema box office. Step 3 - Head to the cinema. Time will tell if AMC is being overly optimistic in its expectations of exporting re-seating and dining know-how to its latest subsidiary. There was an agreement in place in June, but talks paused as the Brexit vote neared and both sides awaited the outcome, he said. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Odeon & UCI underperforms AMC in revenue per location, in part because the chain averages fewer screens per theater. But where exactly will these synergies come from? This is only slightly higher than the 31-year low of the Pound, which means that depending on the terms of the deal and when it closes, it would not take much for it to potentially drop by another USD $100 million. Calculations by author. Whisper it quietly but AMC could even learn some things from the Odeon & UCI’s operation, meaning that not all of the USD $10 million have to come from just the one side the Atlantic. This would combine with AMC's third largest U.S.-based theater chain for a total of 627 theaters and 7,600 screens in the US and Europe. — Ian Shepherd (@IanAShepherd) July 12, 2016. Watch before you buy 2020! Wanda may yet re-organise its ownership, grouping Hoyts under AMC. AMC will then have to pour in several more hundreds of millions of dollars to allow Odeon & UCI to make vital upgrades that are long overdue. Nicholas has been a writer for the Motley Fool since 2015, covering companies primarily in the consumer goods and technology sectors. Terra Firma badly needed this deal, not least as last month the firm abandoned its expensive lawsuit against Citigroup (nice irony: Citi advised AMC on the Odeon deal) over the disastrous take-over bid of EMI in 2007, which Citi had also financed. Step 1 - Claim your code. Here is what AMC CEO Aron had to say about the anticipated annual USD $35 million synergies between AMC and Carmike in a conference call to analysts after news of the acquisition was made public: I need to say this one very carefully. Yes, however Hoyts was not acquired by Wanda on the open market, but rather in a back-room deal with the previous Chinese owner, the investment firm ID Leisure Ventures owned by Sun Xishuang. Still, Wanda is firmly in control and the way the deal is structured leaves it very much in control through AMC, not least given the company’s dual class stocks, with Wanda owning 78% of the shares in AMC, but a much higher 91% of the voting power. This long-read will examine the details of the deal, what the implication of the new global mega-circuit is, how it affects AMC’s proposed acquisition of Carmike, what Wanda’s role behind the scenes was, what isn’t being explicitly said about the deal (such as the buyer needing deep pockets) and more. Moreover, EBITDA for the first quarter this year was up 22% over the same quarter in 2015, so there continues to be strong year-on-year growth. The first cinema to use the Odeon … What about small-town U.S.A. cinema operator Carmike? 0:00 Intro 0:29 Define new array source 1:00 Mounting point 2:13 Defining individual transducers 3:59 … The British pound has crashed in the wake of the Brexit vote (more on this later), but the third-worst performing currency this year is the Chinese Renminbi, which has lost nearly 10% of its value to-date. I know there is a performance by Goran Bregovic on Sept. 27 and I am really very interested in seeing it. We intend to be a lean operator. In the days since the announced acquisition of Odeon & UCI, the stock has jumped up by double digits. If Adam Aron’s negotiating team didn’t do a victory dance in the room where the deal was signed, it was probably because Guy Hands’ team looked dejected enough already for not having achieved the hoped-for GBP £1 billion price (or even the £1.2 billion they wanted in 2011! Second highest building at European Meditarranean after Benidorm Grand Hotel Bali. ), without also having champagne rubbed into their wounds. Global currencies exchange rate performance measured against the U.S. Dollar in 2016. 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