The deal is valued at $4.7 million.
The announcement was made at the company’s recent annual general meeting.
RND Chairman Jerome Fitzgerald, in an interview with the Bahama Journal Tuesday, said that the decision to sell was a quick one.
“It was one that was agreed to in a matter of days,” Mr. Fitzgerald said. “It was not long at all.”
According to Mr. Fitzgerald, the transaction, which is subject to due diligence, contract negotiation and financing, should be completed within 60 days.
Mr. Fitzgerald refused to give specific details about the takeover, but said that more details about the deal would be released in mid-January.
However, it was revealed in a release from RND, that the company will use the proceeds of the sale to reposition the company for growth through its commercial real estate holdings and its automated box office ticketing and transaction business.
Mr. Fitzgerald said the sale of the cinemas puts the company two years ahead of its strategic plan agreed upon by its board in August 2003.
“We now have the resources and a health balance sheet to pursue our long term initiatives,” he said.
Mr. Fitzgerald noted that the sale of the cinema will not adversely affect shareholders.
“Shareholders will actually be affected in a positive way,” he said.
A shareholder of RND, who asked not to be named, said that ever since Galleria Cinemas opened, business at RND was down.
According to the shareholder, the company has been experiencing financial losses to the point where stocks at the various cinemas are always depleted quickly.
RND Cinemas was incorporated back in May of 1993.
RND founders, A. Brent Dean, a chartered accountant, and Mr. Fitzgerald, an attorney, became its president and vice president respectively at that time.
Since its inception, the company acquired four cinemas: two in Nassau, one in Freeport and another in Abaco.
Managing Director of Galleria Cinemas Limited Chris Mortimer said the deal will boost business for his company.
As part of the transaction, Galleria will enter into a long-term lease with RND Holdings Limited to occupy RND’s existing cinema locations at RND in the John F. Kennedy Drive shopping centre and RND on the Mall In Freeport.
The RND release also said Galleria Cinemas Limited will retain all existing RND cinema employees. The company has around 50 employees.
Yvette Rolle -Major, The Bahama Journal
