DOHA: Qatar Media Services (q.media) and Qatar Cinema and Film Distribution Company (QCFS) have agreed to a merger and acquisition deal worth nearly QR2bn yesterday after talks lasting more than 10 months.
The deal sees Qatar Cinema's capital rise from QR51.907m to QR129.699m through the issuance of 7,778,324 shares valued at QR10 per share. q.media will own 60 percent of Qatar Cinema's share capital after the deal.
Sheikh Alhussain bin Ali bin Ahmed Al Thani, Chief Executive Officer of q.media, said: "After significant study and planning, we have decided to invest more than QR1bn in the next three years to open more than 50 state-of-the-art multiplex facilities equipped with the latest technology in the field."
"Our investment in the cinema sector will not be limited to the State of Qatar," added Sheikh Alhussain, "We are also eagerly studying opportunities for investment outside Qatar."
The two companies are currently involved in negotiations with mall owners to explore possible locations for opening new cinema facilities. Following the deal, both companies also intend to establish a number of multiplex entertainment facilities, and have initiated talks with top international designers from the United States to create innovative state-of-the art cinemas, incorporating the latest cutting-edge technical and technological equipment in the field.
Throughout their work, q.media and Qatar Cinema are united in their commitment to creating job opportunities for Qatari youth to pursue employment and training in cinema management.
q.media and Qatar Cinema will together provide enhanced cinema services to Qatar, including allowing consumers to make ticket reservations over the internet or by mobile phone, a first for Qatar.
A meeting of the Qatar Cinema Board of Directors was held this Sunday to discuss the merger and acquisition contract between Qatar Cinema and q.media. At the meeting, the Chairman of the Board of Directors was authorised to sign the merger and acquisition agreement on behalf of the company, upon ratification by an extraordinary general assembly between the two companies and the approval of appropriate authorities.
This meeting was conducted following authorisation by the Board of Directors of Qatari Diar Real Estate Investment Company for Sheikh Hussein Ali bin Ahmed Al Thani, CEO of q.media, to finalise the deal with Qatar Cinema, and restructure the company. q.media is wholly owned by Qatari Diar Real Estate Investment Company.
This acquisition deal is the first phase in an ongoing process to create a Public Joint Stock Company specialising in media, cinema services and event management. Details on the establishment of this company will be announced later this year.
Samer Jaghoub, Managing Partner of Deloitte and Touche, the firm that carried out the studies on the deal between q.media and Qatar Cinema, commented: "This is a turning point for both of these companies- diversifying their services and allowing them to utilise the latest technology in their fields while maximising their companies' capabilities."
Jaghoub added: "The process of conducting financial studies and evaluations in preparation for the deal lasted about 10 months, and I am confident that the resulting deal will result in success for both companies."
© The Peninsula 2011
