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BRIEF-Cineworld to Cinema City International's movie theatre business
January 10, 2014 / 7:51 AM / 4 years ago

BRIEF-Cineworld to Cinema City International's movie theatre business

Jan 10 (Reuters) - Cineworld Group PLC : * Combination with Cinema City International * Proposed combination of Cineworld with the Cinema operations of Cinema City International n.v. * Rights issue shares at 230 pence per new ordinary share to raise about £110 million * The transaction is based on an enterprise value of Cinema City of £503 million * Anthony bloom will continue as chairman of the enlarged group * Mooky greidinger, the current chief executive officer of CCI, will be appointed as chief executive officer; * Transaction will be funded through a fully underwritten rights issue to raise approximately £110 million * Issue to cci of shares in co representing 24.9% of share capital for completion, cash consideration of £272 million * Transaction is expected to be accretive to adjusted earnings per share in FY 2014 * Transaction is expected to be substantially accretive thereafter * Transaction is expected to complete in March 2014 * Deal to have a return on invested capital that is in line with Cineworld’s cost of capital in 2016 * Existing dividend policy will be underpinned by the strong cash flow and future prospects of the enlarged group * Source text for Eikon: * For more news, please click here

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