Welcome!

Mobile IoT Authors: Yeshim Deniz, Elizabeth White, Liz McMillan, Shelly Palmer, Janakiram MSV

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
timw@strategies360.com

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
SYS-CON Events announced today that Datera will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera offers a radically new approach to data management, where innovative software makes data infrastructure invisible, elastic and able to perform at the highest level. It eliminates hardware lock-in and gives IT organizations the choice to source x86 server nodes, with business model option...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, will discuss some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he’ll go over some of the best practices for structured team migrat...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they bu...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.