Primedia and Kersaf today announced the disposal of the bulk of the remaining territories of Ster Century Europe's (SCE) cinema assets in Spain, the United Kingdom and Ireland.

The Spanish assets have been sold to Abacocine, S.L. for a total consideration of Euro 9,2 million ($10,6m) and the assets in the UK and Ireland have been sold to Aurora Cinemas for a total consideration of GBP 16,9 million ($27,0m). Both of these amounts are before any working capital adjustments.

Commenting on the deals, William Kirsh, Primedia CEO, said: "We are pleased to have disposed of these assets, although the ultimate prices were lower than anticipated. For Primedia this represents the near conclusion of the Group's strategic objective of reducing its exposure to cinema exhibition and brings to almost finality the conclusion of a very unsatisfactory period of international cinema expansion.

"These disposals will also eliminate the historical significant equity accounted losses from Ster Century Europe and we are optimistic that our financial performance will continue to improve as we make good progress in developing our South African operations."

The disposals in Spain and the UK were concluded and proceeds received on 30 June 2003 and 25 July 2003, respectively. The sale of the site in Slovakia, SCE's only remaining cinema interest, is currently in progress.

The Group said that further details relating to the financial effects will be included by Kersaf and Primedia in their respective financial results to be published for the year ended 30 June 2003.