Clal Insurance and Finance acquired 17% of the shares in Cinema City, in exchange for an infusion of NIS 100 million at a company value of NIS 500 million before cash. The company’s founders, the Edri families from the owners of United King, the Hadida family and the Cohen family, will continue to hold more than 50% of the company’s shares even after the transaction and will remain the controlling owners of the company and lead its management.
Cinema City, founded in 2002, currently operates 8 entertainment and film complexes around the country, with the latter in Be’er Sheva, Hadera and Ashdod opening at the end of the Corona crisis. The network has 120 screens and it screens an average of 40 different films each day of the screening. Cinema City has a market share of 35% of the cinema ticket market in Israel.
The Cinema City complexes as well as the other cinema complexes in Israel have been closed for more than 16 consecutive months since the beginning of the Corona crisis during March 2020 and have not received government support and on the other hand have suffered enormous financial damage.
Avi Edri, CEO of Cinema City: “We are pleased with the entry of Clal Insurance and Finance into the Cinema City Group, which is an expression of confidence in the Israeli film industry and in Cinema City in particular. We are sure that we will continue to grow and grow together with our partner and lead the film industry in Israel alongside technological progress and excellent films. ”
Yossi Dori, Deputy CEO, Director of the Investment Division of Clal Insurance and Finance, noted: “We believe in leisure and culture, although it has experienced a slowdown in the Corona period, we expect it to be significant again.”
Dori added: “We are happy for the opportunity to connect with existing partners, and strongly believe in the company’s management, and its dedication and determination to its success.”
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