Buyout shop Doughty Hanson plans to buy Britain’s Vue Entertainment for 450 million pounds ($725.6 million), Reuters reported, citing an article in Monday’s Financial Times. The founders of Vue Entertainment – which runs Britain’s largest cinema chain – own 51% of the company. Private equity firm Coller Capital and New York-based hedge fund Och-Ziff own the remaining shares, which they both plan to sell to London-based Doughty Hanson, Reuters reported.
(Reuters) – Private equity firm Doughty Hanson [DOUHA.UL] is set to buy Vue Entertainment [VUENT.UL], Britain’s third-biggest cinema chain, in a deal valuing the business at about 450 million pounds, the Financial Times said on Monday.
Vue’s founders own 51 percent of the business and the rest is owned by private equity group Coller Capital and U.S. hedge fund Och-Ziff , both of which would sell their stakes to Doughty Hanson, the FT said.
People familiar with the situation told the newspaper that Doughty fought off competition from a number of private equity bidders, including BC Partners [BCPRT.UL]J and Omers Private Equity.
Vue’s management would be expected to keep a large minority stake of about 25 percent following a sale to Doughty, although they would still be in line for a large windfall, the newspaper said.
Doughty Hanson was not immediately reachable for comment by Reuters. (Reporting by Karolina Tagaris; Editing by Muralikumar Anantharaman)