Cinema tycoon Yoram Globus is continuing his efforts to create a public platform for his business activity. Sources inform ''Globes'' that Globus and businessman Bennett Kaplan, the Israel franchisee of IMAX Corporation (Nasdaq: IMAX), are planning an issue on the Tel Aviv Stock Exchange (TASE) of IMAX sites in Israel. The issue will initially be limited to the raising debt, with the raising of capital to take place at later date.
Under the plan, Globus and Kaplan will merge a number of cinema sites that they own into a jointly owned company, through Epic Entertainment. Globus will control a 60% stake in the new company and Kaplan will hold the remaining 40%. The new company will own the IMAX site in Eilat, as well as other sites currently under construction in the Kiryon shopping mall in the Krayot north of Haifa, West Rishon Leziyon, and in Beersheva. The ownership will also include IMAX screens and exclusivity over the IMAX franchise in Israel. The company is initially planning to raise NIS 70 million through a bond issue, which will be led by Excellence Nessuah Underwriting (1993) Ltd., together with Clal Finance Underwriting Ltd and Meitav Underwriting Ltd.
IMAX is a three-dimensional method of screening films on wide screens that enhances viewer experience. In Eilat, for example, the IMAX screen is more than 500 meters in length. It is believed that 270 IMAX screens are currently in use worldwide, and this figure is expected to increase by 15% next year. The IMAX brand is owned by IMAX Corporation, which recently offered itself for sale for $400 million.
Epic Entertainment, a group of film producers and US investors headed by Kaplan, is the IMAX franchisee in Israel. The company set up the first IMAX in 2004 in Eilat at an investment of $10 million. Located near the Hayovel Park in the south of the city, the IMAX cinema center is considered one of Eilat’s most successful attractions.
Yoram Globus is one of Israel’s leading veteran filmmakers, and has contributed to the production of dozens of classic Israeli films over decades. Through the Globus Group, which he controls, he is active in film and TV production, marketing and distribution. The group has a cinema chain with 140 cinemas in 23 complexes throughout Israel. Golan Globus represents leading international studios in Israel, among them Universal, Paramount, Dream Works, Warner Brothers and independent studios. The group’s two main projects today are the large “Cinema City” complex planned for Rishon Leziyon, and the cinema complex at the Kiryon Shopping mall in the Krayot. Globus has made repeated attempts in recent years to float part of his activity on the TASE, without success.
Published by Globes [online], Israel business news - www.globes.co.il - on August 7, 2006
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