Wired News – UK Movie Theatre Operator Cineworld Proposes to Acquire US Based Regal Entertainment Group

Stock Monitor: Cinemark Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 01, 2017 / Active-Investors issued a free report on Regal Entertainment Group (NYSE: RGC) (“Regal”), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=RGC as the Company’s latest news hit the wire. The Board of Directors of Cineworld Group PLC, one of the leading cinema groups in Europe, confirmed on November 29, 2017, that it is in advanced stages of discussions for a potential acquisition of Regal. Cineworld is in the process of completing the course of due diligence for making an offer to acquire 100% equity of Regal. If the two Companies merge, the newly formed entity would be able to take on the competition from rivals in US like AMC Entertainment Holdings Inc. and from digital entertainment mediums like Netflix Inc., Apple Inc., etc. Sign up now for our free research reports at:

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Active-Investors.com is currently working on the research report for Cinemark Holdings, Inc. (NYSE: CNK), which also belongs to the Services sector as the Company Regal Entertainment. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Regal Entertainment Group most recent news is on our radar and we have decided to include it on our blog post. Today’s free coverage is available at:

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Cineworld’s offer

Cineworld has said that it plans to acquire 100% equity of Regal in an all-cash transaction and is looking to offer $23 for each Regal’sA share. Cineworld plans to finance the acquisition via a mix of debt and funds raised from a rights issue. Global City Holdings is a Polish holding Company that owns 28% stake in Cineworld has committed to fully subscribe to this rights issue. Cineworld’s plan of raising funds via rights issue will allow it to complete the acquisition without compromising on its progressive dividend policy.

Cineworld has clarified that it would proceed with the potential deal only on the terms set by it and if it is accretive to shareholder value. The potential transaction is in-line with the Company’s growth strategy of expanding its business in new markets via strategic acquisitions in select geographies. If the merger is completed, Regal would provide an excellent gateway for Cineworld to enter the world’s largest cinema market.

Regal’s Response

Regal has officially confirmed that it is in talks with Cineworld for a possible takeover via an all-cash deal. Regal also confirmed that Cineworld has made an offer of $23 for each Regal’s share. Regal has also clarified that so far both companies have not reached an agreement. It has agreed to comment on the matter only if an agreement has been finalized or the talks are terminated.

Both Companies have said that there are no guarantees that the current discussions will result in a final transaction.

Why the deal makes sense?

Regal’s largest rival in the US is AMC Entertainment, owned by China’s Dalian Wanda Group. AMC became the largest exhibition chain in the world after it acquired Carmike Cinemas and UK-based Odeon & UCI Cinemas in December 2016. AMC owns nearly 1,000 theatres and 11,000 plus screens worldwide. In comparison, the proposed Cineworld/Regal merger would own nearly 9,500 screens and nearly 800 theatres globally. The merged Company will be in a better position to compete with AMC. The merger also makes sense given the decline in the number of theatre goers and rapidly changing consumer behavior where people are relying more on digital streaming services like Netflix to watch movies at home. The combined Company would be in a better financial position to handle this tough environment.

However, industry pundits feel that this is a highly exaggerated scenario and things look down due to a string of weak movie releases. The scenario is set to change during the holiday season when movies like “Star Wars: The Last Jedi” are set to release and expected to collect $180 million to $200 million in ticket sales in the US and Canada during its opening weekend.

About Cineworld Group

Founded in 1995 and based in London UK, Cineworld is one of the leading cinema groups in Europe with the number one or number two position by number of screens in each of its regions. The Company has grown to its current strength via strategic expansions and acquisitions. The last major acquisition by Cineworld was in 2014 when it had acquired Cinema City. The Company has four brands and operates in over nine territories. It currently operates 2,217 screens across 232 sites in the UK, Ireland, Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania, and Israel.

About Regal Entertainment Group

Knoxville, Tennessee based Regal is one of the largest motion picture exhibitors in the US. The Company develops, acquires, and operates multi-screen theatres primarily in mid-sized metropolitan markets and suburban growth areas of larger metropolitan markets throughout the US.

The Company operates of 7,315 screens in 561 theatres in 43 states along with Guam, Saipan, American Samoa and the District of Columbia as of September 30, 2017. Regal operates theatres in 48 of the top 50 US designated market areas.

Stock Performance Snapshot

November 30, 2017 – At Thursday’s closing bell, Regal Entertainment’s stock slightly advanced 0.20%, ending the trading session at $20.21.

Volume traded for the day: 14.73 million shares, which was above the 3-month average volume of 4.74 million shares.

Stock performance in the last month – up 23.61%; previous three-month period – up 36.83%

After yesterday’s close, Regal Entertainment’s market cap was at $3.03 billion.

Price to Earnings (P/E) ratio was at 24.35.

The stock has a dividend yield of 4.35%.

The stock is part of the Services sector, categorized under the Movie Production, Theaters industry. This sector was up 0.5% at the end of the session.

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