The UK's largest cinema operator is buying one of the top theater chains in the US.
Cineworld Group has announced a definitive merger agreement with Regal Entertainment Group. The deal will allow the companies to provide a combined global theater platform.
"We are excited to have reached an agreement with Cineworld, at a price that represents a meaningful premium on Regal's unaffected share price for our shareholders. Since becoming a public company, Regal has focused on delivering superior shareholder value, including return of capital in the form of regular and special dividends,” said Amy Miles, CEO of Regal Entertainment Group. "We believe the transaction announced today provides compelling value for our stockholders."
As part of the agreement, Regal stockholders will receive $23 for each share of Class A and Class B common stock. Regal Entertainment Group includes theater chains like Regal Cinemas, United Artists Theatres, and Edwards Theatres. The company currently operates 7,315 screens across 561 theaters in 43 states along with Guam, Saipan, American Samoa and the District of Columbia. By merging with Cineworld, Regal is now poised to better compete with rival theater operator AMC Entertainment.
"We believe this partnership with Cineworld will enhance Regal's ability to deliver a premium movie-going experience for customers and further build upon our strategy of introducing innovative concepts and premium amenities designed to enhance the value of our theatre assets. The combination of our two great companies, Cineworld’s tremendous success in the UK, as well as other markets they have entered since, and Cineworld's commitment to maintain a strong presence in the US and Knoxville, provide a global platform positioned for continued growth and innovation," Miles concluded.