Updates

Cineworld - Transformational US acquisition

March 2018

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The shares have recently gone ex a heavy 4:1 rights issue (four new shares for each existing one) at a price of 157p per share, which will raise £1.7bn gross proceeds to part fund the audacious acquisition of Regal Entertainment Group.The deal is expected to cost US$5.8bn (£4.3bn) including debt and be “strongly accretive to earnings in its first full year following completion (FY’19)” while Cineworld’s return on invested capital associated with the acquisition is expected to meet its cost of capital over the same period.Regal operates one of the largest and most diverse cinema estates in the USA, consisting of 7,315 screens in 561 cinemas in 43 states. The sites are primarily multi-screen ...

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Cineworld - Second largest cinema chain expanding rapidly (July 2015)

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