Creating world’s ‘second largest’ cinema operator
British cinema operator Cineworld has announced plans to buy US cinema chain Regal in a $3.6bn (£2.7bn) deal.
In a statement today, the FTSE 250 company said the proposed deal, which is subject to shareholder and regulatory approval, would create the second-largest cinema operator by screen numbers.
Confirming this, Cineworld’s chief executive Mooky Greidinger said: “Regal is a great business and provides Cineworld with the optimal platform on which we can continue our growth strategy.
“Both companies are strongly committed to bringing a high-end cinematic experience to their customers. Consolidation is an important move forward and the best practice we have successfully rolled out across Europe will be the key driver to continued success.”
Cineworld said it aimed to fund the purchase through a £1.7bn rights issue, and raise a further amount through the refinancing of existing debt.