The acquisition comes as SEVEN is developing 21 entertainment destinations in the Kingdom of Saudi Arabia.
A wholly owned subsidiary of Saudi Arabia’s Public Investment Fund (PIF), Saudi Entertainment Ventures (SEVEN) has announced that it will buy out AMC Entertainment Holdings’ equity stake in Saudi Cinema Company for $30M. Following this, SEVEN will gain 100 per cent ownership of AMC Entertainment in the country.
A statement from AMC verified that the company will now undergo a period of transition which will see it move from a management and investment role in Saudi Cinema Company to a pure licensing relationship.
Initially, AMC partnered with SEVEN to form Saudi Cinema Company in order to both develop and operate cinemas in Saudi Arabia. Now, the current 13 AMC Cinemas will continue to use the AMC brand name in the Saudi market via a licensing agreement, as well any future locations operated by Saudi Cinema Company.
Abdullah Al-Dawood, SEVEN’s chairman said: “The acquisition of AMC’s stake in Saudi Arabia reflects SEVEN’s long-term strategy of bringing unparalleled experiences to the people and visitors of the kingdom and contribute to the Saudi Vision 2023 goals.”
