South Korean Cinema Chain CJ CGV Landing in Russia
The exhibition giant will become the first major foreign player in Russia's exhibition market.
South Korean cinema chain CJ CGV is set to launch operations in Russia.
News agency Interfax reported that the company will open 33 theaters with a total of 160 screens, becoming the first major foreign player in Russia's film exhibition market.
CJ CGV will operate in Russia via a 70 percent stake in a new joint venture with ADG Group, a local developer that won contracts to reconstruct older movie theaters in Moscow.
A time frame for reconstruction and launch of CJ CGV movie theaters has not yet been announced. But once all sites are operational, the Korean company will become Moscow's leading cinema operator based on number of theaters, and the second in terms of screens.
Earlier this year, Russian media reported that CJ CGV was considering the acquisition of Karo, one of the country's top cinema chains.
ADG Group acquired its theaters from the Moscow government in 2015, in the Russian film exhibition industry's biggest privatization deal ever. Most of the theaters are out of service and require substantial renovation. At the time of the acquisition, it was said that $637 million will have to be invested in renovation.
CJ CGV is South Korea's leading cinema chain and the world's fifth biggest, running theaters in China, Vietnam, Indonesia, Myanmar, Turkey and the United States.