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Shanghai Xingyi Cinemas is set to acquire a majority stake in the mainland operations of Hong Kong's Broadway Circuit, Bloomberg reported, citing people familiar with the matter.
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Broadway, controlled by Hong Kong distributor Edko Films, currently operates 29 mainland theaters with several more under development, Bloomberg noted.
The impending transaction is expected to expand Xingyi's portfolio to nearly 200 locations overall, the report added.
Backed by private equity firm PAG, Xingyi aims to leverage this deal to expand into tier-one cities and complement its existing mass-market network, according to sources cited by Bloomberg.
The insiders, who requested anonymity as the information is private, indicated that both cinema brands will continue to operate independently after the deal closes.
A representative for PAG declined to comment when approached by Bloomberg. Meanwhile, Edko Films and Xingyi Cinemas did not immediately respond to media inquiries regarding the acquisition.
