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 ....

29 Nov 2017
N+1 Singer - Cineworld Group - Joining the sector consolidation


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N+1 Singer - Cineworld Group - Joining the sector consolidation
Cineworld Group plc (CINE:LON) | 21.0 0 -1.0% | Mkt Cap: 288.4m
- Published:
29 Nov 2017 -
Author:
Sahill Shan -
Pages:
3 -
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 ....