Welcome!

Wireless Authors: Carmen Gonzalez, Esmeralda Swartz, Trevor Parsons, Scott Hirsch, Elizabeth White

News Feed Item

Consortium of media entrepreneur Paul Heth and private equity funds lead investment into Russia's Karo Film Group

Funding will help Karo Film develop into the leading chain in Russia's fast growing cinema market

MOSCOW, Dec. 13, 2012 /PRNewswire/ -- A consortium backing the Moscow based media entrepreneur Paul Heth and consisting of the lead investor Baring Vostok Private Equity, UFG Private Equity and the Russian Direct Investment Fund, announces an investment in Karo Film, one of Russia's leading cinema chains.  The consortium will acquire a controlling shareholding in the company and will additionally support a circa $100 million investment initiative to open new multiplex cinema venues under the Karo brand over the next three years.

(Photo: http://photos.prnewswire.com/prnh/20121213/SF29279)

Paul Heth has been appointed as Chief Executive Officer of Karo Film. Mr. Heth brings 20 years of development and senior operating experience in the international and Russian cinema industry.  Mr. Ogorodnikov and his business partner Oleg Andreev, co-founders of Karo Film will both retain significant stakes in the business. Mr. Ogorodnikov will also continue to serve as its Chairman.

Paul Heth, said: "I am looking forward to working with Leonid Ogorodnikov, and I am excited that with the backing of three of Russia's leading private equity firms Karo is now positioned to lead the next phase of development of the Russian cinema industry.  We will immediately make a substantial investment into Karo's existing infrastructure to improve and upgrade Karo's 3D and large format digital projection capacity, improve its food and beverage offerings and will work to enhance the efficiency of the company's overall operations.  In the near future we will also be announcing a number of new locations to include the largest cinema developments ever undertaken in Russia."

Leonid Ogorodnikov, Chairman of Karo, said: "I was extremely impressed with the caliber of the investment group assembled by Mr. Heth, all of whom are focused on long term value creation.  We are very proud that since our founding in 1997 we have grown Karo Film into a major player in the Russian cinema sector.  Russia is now one of the world's most important and fastest growing movie and digital entertainment markets.  With this announcement we are positioned to take Karo to the next level."

Russia is one of the world's top ten largest theatrical exhibition markets with box office takings in 2012 expected to exceed $1.3bn and forecast to grow strongly into the medium term.

About Karo
The Karo Film Group was founded in 1997.  It established new standards in Russia for movie theatres. Today, Karo Film is a leading motion picture exhibition company owning and operating 31 modern movie theatres comprising of 197 screens in Moscow, the Moscow region, St. Petersburg, Nizhniy Novgorod, Samara, Kazan, Kaliningrad and Surgut and serves nearly 12 million visitors per year, with forecasted sales in 2012 of approximately $190 million.

About Paul Heth
Mr. Heth is widely credited with the revitalization of the Russian cinema sector.  In 1993 Mr. Heth co-founded and operated Russia's first two modern style cinemas.  In 1996 Mr. Heth co-founded Kodak Kinomir, which under his leadership was one of the highest grossing and most profitable cinemas in the world.  In 2000 Mr. Heth partnered with the American media conglomerate National Amusements (parent company of Viacom and CBS) to design, build and operate unique "next generation" multiplex cinemas in Los Angeles and Philadelphia.  In 2002 Mr. Heth with Shari E. Redstone and National Amusements co-founded Kinostar Delux cinemas in Russia, which generated close to 10% of the Russian national box office.  Mr. Heth led a successful trade sale of the company in June of 2011.  In addition to his activities in theatrical exhibition, Mr. Heth and partners and Sony Pictures Entertainment formed Monumental Pictures in 2005 to produce, market and distribute local language feature films for the Russian theatrical film market. 

Appendix

Top films in Russia: Year to Date 2012 by box office results

Title

Studio

BO  USD $

1.   Ice Age: Continental Drift               

FOX

50, 078, 212

2.   Madagascar 3

DreamWorks Animation

49, 363, 745

3.   The Avengers

Paramount

43, 677, 418

4.   The Twilight Saga: Breaking Dawn-Part 2

Summit

41, 028, 673

5.   Men in Black III

Sony

36, 541, 051

6.   John Carter

Disney

33, 369, 163

7.   Skyfall

Sony/MGM

25, 068, 646

8.   Wrath of the Titans

Warner Brothers

22, 262, 485

9.   Battleship

Universal

21, 998, 643

10. Sherlock Holmes: A Game of Shadows

Warner  Brothers

21, 963, 254

About Baring Vostok
Baring Vostok is one of the leading private equity firms operating in Russia and the CIS. Baring Vostok Private Equity funds have invested over 2 billion USD in more than 60 companies since 1994, and currently have committed capital of 3.7 billion USD.  The fund's portfolios were diversified among financial services, oil and gas, consumer products, telecommunications, and media sectors, including СТС Media, Golden Telecom, Yandex, Ozon, Gallery Group, Centre of Financial Technologies, Enforta, ER-Telecom, 1C, Burren Energy, Volga Gas, Zhaikmunai, Novomet, Kaspi Bank, Orient Express Bank, Europlan, EMC and others.  The investment advisor of the funds, Baring Vostok Capital Partners (Guernsey) has been voted "Russian Private Equity Firm of the Year" by the readers of Private Equity International and Private Equity Online every year since 2005.  The sub-advisor of BVCP has a branch office in Moscow with a team of 30 experienced investment professionals. Baring Vostok is a member of Baring Private Equity International, a global private equity group with more than $12 billion USD of capital under management by affiliates in CIS, Asia, India, Europe and Latin America. www.bvcp.ru

About UFG Private Equity
UFG Private Equity is part of UFG Asset Management group, a leading Russian-region focused alternative asset manager advising on $1.5 billion in assets across debt and equity hedge funds, mutual funds, managed accounts, real estate/agriculture funds and tradition private equity funds.  UFG Private Equity funds invest in companies primarily in Russia as well as the neighboring CIS countries.  UFG backs exceptional management teams in businesses with clear growth opportunities and where there is an opportunity to significantly increase equity value for shareholders.  Since its inception in 2005, UFG Private Equity has participated in 18 investments with an aggregate transaction value of over $1 billion. Additional information is available at www.ufgam.com

About RDIF
Russian Direct Investment Fund (RDIF), established in June 2011, is to be capitalized with $10 billion in Russian government funds to make equity investments that generate strong returns.  In each investment it makes, the RDIF is mandated to secure co-investment that as a minimum matches its commitment, thus acting as a catalyst for direct investment into the Russian economy.  The RDIF's Management Company is a 100% subsidiary of Vnesheconombank (VEB). Additional information is available at www.rdif.ru

Contacts for additional information:

For Karo-Film:
Tim Warner Jr.
Mob: +1 406 461 4618
Strategies 360
[email protected]

For the RDIF:
Andrew Hayes/Andrew Leach/Maria Ignatova/Elena Kuza
Hudson Sandler
Tel +44 (0) 20 7796 4133

SOURCE Karo Film Group

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at Internet of @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, will discuss how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money! Speaker Bio: Esmeralda Swartz, CMO of MetraTech, has spent 16 years as a marketing, product management, and busin...
Samsung VP Jacopo Lenzi, who headed the company's recent SmartThings acquisition under the auspices of Samsung's Open Innovaction Center (OIC), answered a few questions we had about the deal. This interview was in conjunction with our interview with SmartThings CEO Alex Hawkinson. IoT Journal: SmartThings was developed in an open, standards-agnostic platform, and will now be part of Samsung's Open Innovation Center. Can you elaborate on your commitment to keep the platform open? Jacopo Lenzi: Samsung recognizes that true, accelerated innovation cannot be driven from one source, but requires a...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Robin Raymond, Chief Architect at Hookflash Inc., will walk through the shifting landscape of traditional telephone a...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic • Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it’s a mix of architectural style...
SYS-CON Events announced today that SOA Software, an API management leader, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. SOA Software is a leading provider of API Management and SOA Governance products that equip business to deliver APIs and SOA together to drive their company to meet its business strategy quickly and effectively. SOA Software’s technology helps businesses to accelerate their digital channels with APIs, drive partner adoption, monetize their assets, and achieve a...
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.
SYS-CON Events announced today that Utimaco will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Utimaco is a leading manufacturer of hardware based security solutions that provide the root of trust to keep cryptographic keys safe, secure critical digital infrastructures and protect high value data assets. Only Utimaco delivers a general-purpose hardware security module (HSM) as a customizable platform to easily integrate into existing software solutions, embed business logic and build s...
Connected devices are changing the way we go about our everyday life, from wearables to driverless cars, to smart grids and entire industries revolutionizing business opportunities through smart objects, capable of two-way communication. But what happens when objects are given an IP-address, and we rely on that connection, sometimes with our lives? How do we secure those vast data infrastructures and safe-keep the privacy of sensitive information? This session will outline how each and every connected device can uphold a core root of trust via a unique cryptographic signature – a “bir...
Internet of @ThingsExpo Silicon Valley announced on Thursday its first 12 all-star speakers and sessions for its upcoming event, which will take place November 4-6, 2014, at the Santa Clara Convention Center in California. @ThingsExpo, the first and largest IoT event in the world, debuted at the Javits Center in New York City in June 10-12, 2014 with over 6,000 delegates attending the conference. Among the first 12 announced world class speakers, IBM will present two highly popular IoT sessions, which will take place November 4-6, 2014 at the Santa Clara Convention Center in Santa Clara, Calif...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at Internet of @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, will discuss how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...