Dubai's Meraas Is Said to Seek Buyers for Stake in Roxy Cinemas
(Bloomberg) -- Dubai-based property developer Meraas Holding LLC is weighing the sale of a significant minority stake in its Roxy Cinemas unit to raise funds for expansion, according to people familiar with the matter.
Meraas will start gauging interest from potential buyers shortly, the people said, asking not to be identified because the discussions are private. The company operates three cinemas in Dubai under the Roxy brand, according to its website. Meraas declined to comment.
Merger and acquisition deals for movie theaters are increasing as investors seek consumer facing businesses with growth potential. U.K.’s Cineworld Group Plc agreed to buy U.S. theater operator Regal Entertainment Group for about $3.6 billion last year to expand into the biggest movie market.
Emaar Properties PJSC, the developer of the world’s tallest skyscraper in Dubai, planned to sell a minority stake in its Reel Cinemas movie-theater chain, people familiar with the matter said last year.
Meraas and Dubai Holding set up a project management company to manage multi-billion dollar projects by both firms, as well as other third parties, Dubai Holding said last May. The new company will deliver some of the emirate’s landmark projects, it said.
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