The decision followed a strategic review of the company by JPMorgan and Goldman Sachs, said the FT, citing a person close to the company. The investment banks advised Terra Firma to put the sale on hold unit and wait for an improvement in the Spanish unit’s results, said the sources.
In August Odeon said that attendance in Spain slid 31 per cent in the second quarter due to a VAT increase and a high unemployment rate, resulting in a two per cent drop in group revenues.
Terra Firma bought Odeon in 2004 for €650m and merged the company with UCI, which it bought for €350m the same year, to create the UK’s largest cinema operator.
The firm previously sought an exit for the cinema chain in 2011, and rejected an offer from fellow private equity investor BC Partners that same year.
Copyright © 2013 AltAssets