GU forges greater Euro union
Stock rises 11% on news of German deal
GU reps said the deal, unveiled Monday, establishes the Kieft & Kieft/Greater Union partnership as Germany's leading cinema player with 134 screens in seven multiplexes, which will expand to more than 30 multiplexes by 2000.
The German pact exemplifies GU's "commitment to ensuring sustained growth and increased market share, as Germany is a key platform in our overseas expansion strategy," according to GU managing director Robert Manson.
GU's use of Germany as a hub for further Euro expansion comes after rival chains Village Roadshow and Hoyts made major commitments to overseas expansion (Daily Variety, Sept. 15).
Village has ventures in the U.K., France, Italy, Hungary, Germany, Greece, Argentina, South Korea, Malaysia, Thailand and Singapore, while Hoyts has circuits in the U.S. Northeast, New Zealand, Germany, Mexico and Chile, plus joint-venture pacts to operate screens in the U.K., Belgium, Argentina, Brazil, Paraguay and Uruguay.
Until now, GU's only offshore operation was in the Middle East, where it plans to operate 50 screens, starting with a soon-to-open 11-screen multiplex in Dubai in the United Arab Emirates. But by 2000, GU will operate 350 overseas screens to add to its 317-strong Oz loop, and 100 more operated in Oz joint ventures.
Shares in GU's parent company, Amalgamated Holdings, soared 11%, to A$7 ($4.55) on news of the deal.
