By Santhosh V Perumal
Business Reporter
Q.media, a wholly-owned subsidiary of Qatari Diar, is proposing to acquire a 60% stake in Qatar Cinema (QCF) as part of its expansion drive.
From left: Sheikh Alhussain, Jaghoub and Mandani outlining q.media’s QCF stake purchase plan
The Qatar Exchange-listed QCF will issue new shares to q-media, the proportion of which will have to be approved by its shareholders at an extra-ordinary general assembly and also subject to the approval from relevant authorities including the Ministry of Business and Trade, Qatar Financial Markets Authority and the bourse.
However, the officials were not forthcoming on the size of the deal or the share-swap ratio.
The combined entity, which will have a total asset size of QR2bn, has projected an average QR200mn net profit for the next five years, according to the valuation and due diligence done by Deloitte & Touché.
In September last year, QCF, in a communiqué to the bourse, had said it appointed Deloitte & Touché to carryout the due diligence.
Q.media has already outlined a total capital expenditure of QR1bn for various projects, including construction of new cinema halls, the conversion of the present Gulf Cinema at the C-Ring road into a cinemaplex and introducing new technologies in order to enable customers to book the tickets through internet and mobile phones.
More than 50 theatres are expected to be constructed in Qatar during the next three to four years, q.media CEO Sheikh Alhussain bin Ali bin Ahmed al-Thani said in the presence of Mohamed Mandani, a board member of Qatar Cinema.
About the finance for expansion, Alhussain said a part of it would be met internally. However, he did not specify on the other part saying multi options are available including raising equity capital, borrowing from banks and issuing bonds or sukuk. “Our general approach will be conservative,” he said.
Deloitte managing partner Samer Jaghoub said the acquisition is going to be successful due to the synergies and market opportunities.
Optimistic that several mergers and acquisitions (M&As) are on the pipeline in the backdrop of strong growth in the country, he said “it is the right time for the acquisition”, in specific reference to the proposed stake purchase by q.media.
