Cineworld confirms advanced Regal talks

Cineworld said it was in advanced $3.6 billion (£2.7bn) takeover talks with American cinema chain Regal yesterday – and would be alert to further acquisition opportunities.

The all-cash deal, for $23 a share, would combine Europe’s second largest cinema group with the second largest in the US.

Cineworld said that it would fund the potential acquisition through a mixture of debt and a rights issue.

It insisted that the enlarged entity would continue to invest and maintain its policy of dividend rises each year. The group added that it “has continued to monitor possible selective acquisitions that have the potential to enhance its existing operations, and which allow it to expand into new markets.

“The potential acquisition of Regal would provide Cineworld with a highly attractive platform in the world’s largest cinema market”.

Cineworld also owns the Picturehouse Cinemas chain.