Last Kiwi-owned cinema chain sells up

Another New Zealand cinema exhibitor is headed for the exit door.

New Zealand cinema exhibitor Barrie Everard is selling the Berkeley Cinema chain to the Hoyts Corporation.

The sale of the 21 screens at four multiplexes boosts Hoyts' flagging profile in Auckland.

New Zealand's biggest growing market has been dominated by SkyCity Cinemas.

The Berkeley chain has four cinema complexes situated in Botany Downs, Mission Bay, Takapuna and Hibiscus Coast.

Hoyts' New Zealand cinema circuit will increase from 7 multiplexes and 49 screens to 11 multiplexes and 70 screens.

The sale marks the end of the last independent and New Zealand-owned cinema chain. NZX-listed SkyCity handed over its cinema arm to Australian company Amalgamated Holding last month.

It is expected to rebrand SkyCity Cinemas soon - possibly using one of its Australian brands Event Cinemas.

The third major exhibitor in New Zealand with screens south of Auckland is the American-listed Reading Cinemas.

Hoyts has a kiwi connection. Former All Black captain David Kirk is chief executive and as former chief executive of Fairfax he took a strong interest in New Zealand.

But he said that the small independent cinemas left in the New Zealand market were unlikely to be a drawcard for Hoyts.

Hoyts is owned by Australia's Pacific Equity Partners and there has been speculation recently that PEP was looking at options for a sale.

Kirk said that the purchase of Berkeley Cinemas would make it more attractive for sale but the purchase was independent from such moves.

"We have been talking to investment bankers about the possibilities. We are looking at the options in detail.

"Opportunities to grow by acquisition do not occur too many times in this business but Avatar shows that 3D has a good future."