Hoyts to be sold to Pacific Equity Partners

Publishing and Broadcasting Ltd and West Australian Newspapers Holdings Ltd have agreed to sell the Hoyts Group to Pacific Equity Partners in a deal that values the target at A$440 million ($518.6 million).

Hoyts owns Australia and New Zealand cinemas, including Val Morgan cinema advertising and film distribution.

Publishing and Broadcasting's new media chief executive Martin Dalgleish welcomed the agreement.

"Hoyts is one of the true iconic and leading entertainment brands of the region," he said.

The transaction values Hoyts at A$440 million on an enterprise basis. Completion is subject to approval from the Foreign Investment Review Board and the New Zealand Overseas Investment Office.

The sale is expected to be completed by November and realise almost A$150 million each for West Australian Newspapers and PBL.

- AAP