Regal Entertainment Group recently signed a definitive merger agreement with Cineworld, the U.K.'s largest cinema operator.
So, what does that mean?
It means Cineworld Group PLC will acquire Regal, a leading motion picture exhibitor. According to Business Wire, Regal stockholders will receive $23 in cash for each share of Class A and Class B common stock. This represents a premium of 43.2 percent over Regal's 30-day weighted average share price of $16.06, according to Business Wire.
The transaction was approved unanimously by Cineworld's and Regal's board of directors.
“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.
Cineworld CEO Mooky Greidinger says Regal provides their company with the "optimal platform on which we can continue our growth strategy," Business Wire reports.
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