Call for talks on UGC cinema sale

Blackstones, new owners of the UGC cinema chain, have been invited to open talks about the sale with BECTU.

UGC Cinemas' French owners have sold their UK operation to Blackstones, a private equity group who also own Cine UK. The companies will be run separately in the immediate future.

The sale price was £211m, slightly less than the £215m paid by UGC when they bought the chain from Virgin in 1999 - a transaction that some commentators described as buying a "pig in a poke".

Although much of the profit taken over the last 5 years has been re-invested in new-build multiplexes. UGC management are confident that the sale will result in greater investment in a thriving and profitable company.

UGC made a £5 million-plus profit last year compared to declared losses among their key market rivals, and enjoyed a record increase in admissions.

There are no plans to sell any cinemas, but there are not thought to be any competition issues (the only town where both cinemas operate in competition is Swindon).

UGC currently operate 42 cinemas in the UK plus one in Dublin whilst Cine UK operate 30, branded as Cine World. The new company will be rebranded as Cine World during the next 12 months.

BECTU National Official, Willie Lesslie has informed UGC management that the negotiating team wish to have an early meeting with Steve Weiner, CEO of Cine UK to discuss the continuation of the existing harmonious working relationship between the company and the union.

Union officials are confident that a meeting with Blackstones will be set up early in 2005.