(20 June 2011, Doha - Qatar) Qatar Media Services LLC (q.media) and Qatar Cinema and Film Distribution Company (QCFS) have agreed to an acquisition deal worth nearly QAR2bn today after talks lasting more than 10 months.

The acquisition deal sees Qatar Cinema's capital rise from QAR 51,907,400 to QAR129,699,640 through the issuance of 7,778,324 shares valued at QAR10 per share.  Q.media will own 60% of Qatar Cinema's share capital after the acquisition.

H.E Sheikh Alhussain Bin Ali Bin Ahmed Al-Thani, Chief Executive Officer of q.media, "After significant study and planning, we have decided to invest more than QR1billion 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 H.E. Sheikh Alhussain, "We are also eagerly studying opportunities for investment outside of Qatar."

The two companies are currently involved in negotiations with mall owners to explore possible locations for opening new cinematic facilities.  Following the acquisition, 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 acquisition contract between Qatar Cinema and q.media.  At the meeting, the Chairman of the Board of Directors was authorized to sign the 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 authorization by the Board of Directors of Qatari Diar Real Estate Investment Company for HE Sheikh Hussein Ali bin Ahmed Al THani, CEO of q.media, to finalize 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 specializing in media, cinema services and event management.  Details on the establishment of this company will be announced later this year.

Mr. Samer Jaghoub, Managing Partner of Deloitte and Touche, the firm that carried out the studies on the acquisition 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 utilize the latest technology in their fields while maximizing their companies' capabilities."

Mr. Jaghoub added: "The process of conducting financial studies and evaluations in preparation for the acquisition lasted about 10 months, and I am confident that the resulting deal will result in success for both companies."

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© Press Release 2011