Vietnam’s movie fans will be disappointed to find out that one of their favorite cinema chains is leaving the market.
According to a source involved in the film industry, Deal Street Asia reports that Vietnamese entertainment conglomerate Galaxy Group is putting its cinema company, Galaxy Cinema, up for sale while looking to exit the business.
The news source also added that the company is in talks with a few private equity firms in an attempt to rake in US$25 million from selling its cinema operation. A previous deal failed because the equity firm wanted Galaxy's founder – 56-year-old businesswoman Dinh Thi Hoa – to continue running the cinema, but its management team wanted to leave the industry entirely.
However, the exact details of the current negotiation process are unclear as neither Galaxy nor its early investor, Vietnam Investment Group, could be reached for comment. The news source didn't include specific reasons why.
Galaxy Cinema is the cineplex brand owned by Galaxy Studio, a film production and distribution company that is part of Galaxy Group (Thien Ngan Group). Hoa established the group in 1994 as a company that provides media and communication services. Almost a decade later, the firm expanded into the movie screening and distribution business under the brand Galaxy Cinema.
As of 2016, Galaxy is Vietnam’s third-largest cinema chain after South Korean franchise CGV and Lotte Cinema. Galaxy Cinema has 10 outlets across the country while its competitors own 38 and 29, respectively.
[Photo via Career Link]
