Regal Entertainment Group Signs Agreement to Be Purchased by Cineworld Group PLC

11:50 12/05/2017

An American movie theater chain, Regal Entertainment Group RGC , announced they have entered into a complete merger agreement with Cineworld Group PLC. Cineworld is the U.K.’s largest cinema operator and they will wholly own and operate Regal Entertainment.

The terms of the deal is that stockholders of Regal RGC  will obtain $23 in cash for each share of Class A and Class B common stock. The total transaction valuation is $5.9 billion including Cineworld acquiring some of Regal’s debt and net of cash.

The agreement was approved unanimously by each Regal’s and Cineworld’s board of directors as each member signed a vote in support of the transaction. The deal is expected to be officially closed in the first quarter of next year.

CEO of Regal RGC , Amy Miles said, “We are excited to have reached an agreement with Cineworld, at a price that represents a meaningful premium on Regal’s unaffected share price for our shareholders. Since becoming a public company, Regal has focused on delivering superior shareholder value, including return of capital in the form of regular and special dividends.”

Share of Regal Entertainment RGC  rose up 9.74% and is closing on their 52-week high. Shareholders are expected to cash out well after the transaction is officially closed. Miles added that this partnership with Cineworld will “enhance Regal’s ability to deliver a premium movie-going experience for customers”.

Cineworld Group CEO Mooky Greidinger said, “Regal is a great business and provides Cineworld with the optimal platform on which we can continue our growth strategy. Both companies are strongly committed to bring a high end cinematic experience to their customers. Consolidation is an important move forward and the best practices we have successfully rolled out across Europe will be the key driver to continued success.”

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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