October 5, 2015
Lippo Group Seeks $100m funding for Cinemaxx to the biggest
Copyright © 2015. SOLUSInews.com.

JAKARTA, 5/10/15 (SOLUSInews): One of the largest business conglomerates in Indonesia, Lippo Group, is seeking to raise as much as $100 million of funding with the help of German financial institution Deutsche Bank and Rothschild Group to support its goal of operating up to 2,000 cinema screens across Indonesia.

“We have received serious interest from investors who are keen to participate in our growth story,” said Mr Brian Riady, a Lippo director and CEO of Cinemaxx Global Pasifik, in a statement on Thursday.

“We have made significant progress in developing our business and we believe now is the right time to explore this.

"We are excited to be working with Deutsche Bank and Rothschild to find partners who share our vision.”

The company hopes the $100 million in funding will also the Cinemaxx to go public within the next three years, the company said.

Established in August last year, Cinemaxx plans to invest as much as $500 million to build up to 2,000 screens and 300 cinema complexes across 85 cities in Indonesia over the next five years. Cinemaxx currently owns 11 movie theaters — totaling to 60 screens — in nine cities across Indonesia.

The company has projected it will book as much as $500 million in revenue and become a company worth $1 billion by 2024, according to the statement.

“Indonesia is the most populated country in Southeast Asia and the fourth-largest country in the world, yet it has one of the lowest penetration rates of movie theaters in the world,” said Brian.

“With this ten-year plan, Cinemaxx aims to be the biggest and most comprehensive theater chain in Indonesia so far.”

Indira Citrarini, managing director and head of capital market and treasury solutions for Indonesia at Deustche Bank, said the loan represented “a unique opportunity to invest in Indonesia’s consumer growth story.”

Cinemaxx announced the soft-launching of its newest cinema complex — the Cinemaxx Maxx Box in Lippo Village — in Karawaci on Wednesday.

The new Cinemaxx Maxx Box in Lippo Village claims to be the only theater with two giant Ultra XD screens, both more than 24 meters in width and 14 meters in height — or equivalent to 370 units of 55-inch LED television units.

The cinema complex also offers an exclusive lounge, dubbed “Cinemaxx Gold," and an interactive digital area, which will allow it to offer services such as motion-capture games and social media interactions, the statement said.

Experts such as Vivek Couto, executive director at media research company Media Partners Asia, pointed out that Cinemaxx has a lot of potential to grow in Indonesia as the country is “severely under-screened.”

“This, combined with a rising consuming middle class that is thirsty for entertainment, increasing urbanization and a thriving local movie industry makes the Cinemaxx story very interesting,” he said, according 'Jakarta GlobeAsia' --- The Jakarta Globe, GlobeAsia and First Media are affiliated through the Lippo Group. (jr-jga/S)