British-based movie theater operator Cineworld Group plc (LSE: CINE) is buying US movie theater chain Regal Entertainment Group. The companies have agreed a reverse takeover at $23 per share, a 13% premium on Regal's share price, for a total deal worth $3.6 billion.
Cineworld Group CEO Moshe Greidinger holds a 25% stake in the company. Greidinger's grandfather opened the first cinema in Israel in Haifa in 1929. Today, Cineworld Group has 2,049 cinema screens across Europe and controls 34% of Israel's movie theater market through the Yes Planet and Rav Hen cinema chains.
Greidinger said, “Regal is a great business and provides Cineworld with the optimal platform on which we can continue our growth strategy. 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.”
Regal Entertainment owns 561 theaters with 7,315 screens across the US. After the merger, Cineworld will be one of the world's largest movie theater operators.
Published by Globes [online], Israel business news - www.globes-online.com - on December 5, 2017
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