Olswang and Stephenson Harwood have taken lead roles as Cineworld moves to update its UK screens to be able to handle 3D films such as 2010 blockbuster Avatar.

Olswang advised Cineworld Group on the deal, which closed earlier this month (11 June), while Stephenson Harwood was instructed by digital cinema technology provider Arts Alliance Media, which will implement the digital upgrade programme at 77 Cineworld cinemas.

The deal will see all of the cinema chain's screens updated within a three-year time frame for a cost of £40m in total, £10m of which was invested earlier this year.

The full digital rollout will allow Cineworld to continue to show the latest 3D films on more screens; offer customers an increased range of alternative entertainment, including live sport, live opera, theatre, comedy and gaming; as well as capitalise on other venue uses, such as training and conferences.

Olswang floated a team on the deal led by corporate group head Fabrizio Carpanini while City finance partner David Lacey led for Stephenson Harwood.

Commenting on the deal, Lacey said: "For us this was another transaction in a longstanding relationship with Arts Alliance Media. This deal is especially interesting because it highlights the importance of digital media in this sector. I expect to see several more deals of this kind going forward."

Carpanini added: "Cineworld has been one of our valued clients over the past few years and we were very pleased to be instructed to advise on this hugely important deal for them. It involved a complex and innovative financial structuring across several jurisdictions."

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