Home news Cineworld to buy Regal cinemas in blockbuster deal

Cineworld to buy Regal cinemas in blockbuster deal

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Cineworld has agreed to buy US cinema chain Regal in a $3.6bn (£2.7bn) deal that will create the world’s second largest cinema group.The new cinema giant will operate in 10 countries, and have 9,500 screens across the US and Europe.The deal gives Cineworld access to North America, which has the largest box office market in the world.Cineworld currently has more than 2,000 screens across 221 sites and also owns the Picturehouse Cinemas chain.Are we falling out of love with the cinema?This year, it has been boosted by blockbusters Dunkirk and Despicable Me 3, with recent big releases including Paddington 2 and Justice League.Cineworld chief executive Mooky Greindinger said: “Regal is a great business and provides Cineworld with the optimal platform on which we can continue our growth strategy.”News of the deal sent shares in Cineworld down 2.5% in early trade.Last week. Cineworld’s shares had plunged 20% when the companies admitted they were in takeover talks.Cineworld has agreed to pay $23 a share for Regal, and is funding the deal mainly by asking investors to stump up £1.7bn by buying new shares through a procedure known as a rights issue. Issuing new shares typically depresses the price of existing shares.
Source: BBC