South African exhibition giant Ster-Kinekor is to pull out of neighbouring Zimbabwe by the end of June.

The move is reportedly due to shortages of foreign currency within the Zimbabwean operations making it difficult to acquire foreign films and to pay for company houses. Two complexes, said to be the best equipped in the country, will close on June 28. Another complex in Bulowayo closed in 1999 with the intention that a replacement be built in Eastgate, but this has not opened.

The Zimbabwe Standard newspaper reported that Ster's Zimbabwe division has cancelled its contracts with Rainbow, a local company that acts for United International Pictures and other US majors. The paper reported that Rainbow too may now be feeling a currency crunch.

Ster's regional manager, Patson Mago offered Screen International no comment.

Last year Ster announced that it would re-focus on its home market and that it had appointed ING Barings to sell off its was putting its European exhibition circuit Ster Century. Having moved into Europe in 1998, Ster Kinekor invested some $195m opening 14 multiplexes across six territories by the end of 2000. At one stage another 21 sites were scheduled to roll-out by 2003.

But even in South Africa it is having a hard time. Last year it slashed ticket prices by a third from about $3.97 (R25) to about $2.86 (R18) in a bid to boost attendance.