Cineworld shares rise on news of rival takeover
2023.02.13 08:25
Cineworld shares rise on news of rival takeover
By Kristina Sobol
Budrigannews.com – Cineworld Group shares (LON:) on the news that Vue International had secured the financial backing to pursue a takeover bid for its struggling rival, rallied on Monday, recovering more than a sixth of their value.
According to Sky News, Vue, Europe’s largest privately owned movie theater chain, has agreed to receive capital from funds managed by Barings and Farallon Capital Management for a strategic acquisition.
Sky News added that Vue is preparing to present its purchase offer prior to the Cineworld advisors’ deadline later this week.
In January, Cineworld stated that it would begin a “marketing process” for a potential “value maximizing transaction” of the group’s assets. The move was made after the business began auctioning off parts of the business and filed for bankruptcy protection in the United States. The restrictions imposed during the pandemic had a significant impact on the business.
Even though shares are up today, Cineworld’s stock price has fallen by nearly 90% in the past year.
