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Lotte Cinema. (Photo=Lotte Cinema) |
[Alpha Biz= Kim Jisun] Lotte Cultureworks, the operator of Lotte Cinema, and Megabox Joongang, which owns Megabox, announced on May 8 that they have signed a Memorandum of Understanding (MOU) for a merger. Both companies are active in cinema operations as well as film investment and distribution businesses.
If the merger is completed, the combined entity will become the largest multiplex cinema operator in South Korea by number of theaters, surpassing current market leader CGV.
Lotte Cultureworks is 86.37% owned by Lotte Shopping, an affiliate of Lotte Group, while Megabox Joongang is 95.98% owned by Contentree Joongang, a subsidiary of JoongAng Group.
A Lotte Group representative stated, “The joint venture will be co-managed by both parties, and we plan to proceed quickly with new investment initiatives and the merger review process by the Fair Trade Commission.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
