Korea’s Multiplexes Expand to Southeast Asia

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Following Vietnam, CGV Takes Over Multiplex Chain in Indonesia

CJ CGV is working on taking over Blitz Megaplex, the second biggest multiplex in Indonesia. CGV, which took over Vietnam’s no. 1 theater Megastar in July last year, is now seeking to expand its Southeast Asian market share by taking over the Indonesian company. CJ CGV is going to conclude the agreement by the end of December when the negotiations with the major shareholders are due to finish.

CGV, as it worked to acquire Blitz, raised funds through joint investment with a couple of Private Equities that included the Korea Development Bank PE and the 2nd biggest PE from Indonesia. The acquisition fund is believed to be around 60-100 billion.

Blitz was first opened in Bandung Indonesia and has expanded its size to 7 theaters with 66 screens and now commands a 10% market share. CGV previously took over Vietnam’s multiplex chain Megastar which possesses 9 theaters with 69 screens and they are planning to expand its size to 24 theaters with 198 screens.

Lotte Cinema, Korea's second biggest multiplex chain, is planning to operate 18 theaters in the region by 2015, which is expected to create competition between the two Korean exhibiton giants in Southeast Asia.

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