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The planned initial public offering of Australian multiplex chain Hoyts has been called off, according to media reports.

The flotation had been expected to value the company at up to A$900 million ($773 million) in a pre-Christmas sale handled by investment bank UBS.

The sale process was triggered by majority shareholder Pacific Equity Partners, a private equity firm that bought in to the company in 2007. However after recent roadshow presentations to potential investors PEP is understood to have become concerned about the valuation and the ability to maintain income growth at a time that the sector is facing growing competition from Internet sources.

Australia has a growing number of online video groups and Netflix is expected to launch an Australia/New Zealand service in 2015, possibly as early as March.

Hoyts may now seek to boost revenues from concessions or higher ticket prices.

Hoyts operates 52 cinemas with 423 screens across Australia and New Zealand, the Hoyts Kiosk DVD distribution chain, and cinema advertising business Val Morgan.