On October 6, 2026, Lithuanian Competition Authority rejected the application of the company’s parent company MM Grupp OÜ (hereinafter MMG) to resolve the issue of acquiring the cinema located in the Vilnius Akropolis center by granting a concentration permit.
MMG believes that the Authority’s decision is not in line with established practice in European cinema transaction market, including in Lithuania, or with competition rules. The Authority treated Hollywood films as a separate market from other films and cinemas located in shopping malls as a separate market from cinemas operating outside shopping malls.
MMG also believes that the Authority did not sufficiently take into account the fact that Apollo cinema’s entry into Vilnius cinema market in 2021 increased competition and brought benefits to consumers. As a result of the decision, Vilnius Akropolis cinema may in the future belong to Forum Cinemas instead of Apollo Group, although this would increase market concentration: Forum Cinemas would be approximately twice the size of its closest competitor in Vilnius.
MMG has decided to challenge the decision of Lithuanian Competition Authority in court and the decision has not entered into force. Further ownership of Vilnius Akropolis cinema therefore depends on final outcome of court proceedings, which may take years to reach. Only in the event of a final court decision unfavourable to MMG could the risk of the cinema being transferred, as described on pages 26–27 of the prospectus, materialise, which the company currently assesses as unlikely.
Background of the procedure
The decision in question is part of a broader dispute between MMG and Lithuanian Competition Authority, which is pending in Lithuanian court. The main dispute concerns MMG’s acquisition of Vilnius Akropolis and Kaunas Akropolis cinemas and change and retroactive application of the Authority’s previous practice.
MMG later transferred both acquired cinemas to the company. The company currently operates Vilnius Akropolis cinema. In the case of Kaunas Akropolis cinema, the transaction between the company and MMG was reversed to mitigate risks.
Lithuanian Competition Authority found in a decision issued on 28 October 2025 that MMG acquired two cinemas without required merger clearance. The Authority noted, among other things, that MMG might apply for merger clearance retrospectively.
MMG challenged this decision in court, as MMG considered that a merger permit was not required for the acquisition of the cinemas. In parallel, MMG filed a merger application for Vilnius Akropolis cinema in order to resolve the ownership issue of this cinema more quickly than in court proceedings. Lithuanian Competition Authority has now refused to resolve Vilnius Akropolis cinema issue through a merger permit. Therefore, the legality of the acquisition of both the Vilnius and Kaunas cinemas remains for the court to decide.
Clarification on the 7.5 million euro fine
There have been recent media reports that Lithuanian Competition Authority has imposed a fine of 7.5 million euros on Apollo Group. The fine was imposed to MM Grupp OÜ, not Apollo Group.
The same distinction is also made on pages 27 of the prospectus:
“For risk management purposes, the acquisition of new cinemas is usually carried out at the level of MM Grupp OÜ, which then transfers the ownership of the acquired cinemas to the Company. Therefore, the Company is not among the recipients of the 7.5 million euro fine imposed by Lithuanian Authority in connection with the acquisition of Vilnius Akropolis and Kaunas Akropolis cinemas.”
Additional information:
Toomas Tiivel
Chairman of the Management Board
+372 550 5285
