It is currently intended that Cineworld would fund a potential acquisition of Regal through a mixture of incremental debt and a material equity raise by way of a rights issue, including a commitment to full subscription from Cineworld's 28% shareholder, Global City Holdings N.V. The proposed financing of the Potential Transaction will allow the enlarged group to continue its current strategy of investment in the business, as well as to maintain its policy of progressive dividends.
Cineworld would only proceed with the potential transaction in circumstances and on terms which it believes would be accretive to shareholder value.
Cineworld's present strategy is to evaluate all opportunities to complement its organic growth. In keeping with this approach, 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.
Shareholders are advised that there can be no certainty that the discussions between Cineworld and Regal will lead to any agreement or as to the timing or terms of any such transaction.
If it takes place, the transaction would be classified as a reverse takeover for the purposes of the Listing Rules of the Financial Conduct Authority and completion of any transaction would be conditional on Cineworld shareholder approval.
In accordance with section 5.6.12G of the Listing Rules, Cineworld believes that Regal has complied with the applicable US disclosure requirements in relation to inside information and financial information. Disclosures made pursuant to these requirements can be obtained on www.sec.gov. Further, Cineworld believes there are no material differences between those disclosure requirements and the disclosure requirements under EU Regulation 596/2014 and the Disclosure Guidance and Transparency Rules Sourcebook.
A further announcement will be made in due course, if appropriate.