Cineworld has responded to press speculation confirming that it is in advanced discussions with Regal Entertainment Group in the USA re a possible cash offer. The proposed price is $23 implying a market cap of c.$4bn - so effectively a reverse takeover. Funding will come via a mixture of debt and a “material equity raise by way of a rights issue”, with management (who own 28% of the equity) committed to invest in the fund raise. The deal would equate to a c.9x FY18 EV/EBITDA which is a c.5% disc ....
