Cineworld pays $170 mln to Regal investors unhappy with 2017 buyout

  • 9/10/2021
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Sept 10 (Reuters) - Cineworld (CINE.L), the world"s second-largest movie theatre operator, said it will pay $170 million to Regal Entertainment shareholders, who were disgruntled with the price they received when the London-listed company took over the U.S. chain in 2017. According to an agreement, $92 million will be held in escrow and be available to Cineworld as additional liquidity under certain circumstances for the payment, Cineworld said on Friday. The company, with a debt load of $8.44 billion compared to its market value of about $1.19 billion, has taken a hammering since the onset of the pandemic, which saw it burn through cash as cinemas were shut for long periods due to restrictions. Cineworld included $244.2 million in its last annual report, which it said represented the amount payable to a group of Regal"s former stakeholders who had challenged whether they received a fair market price for their shares. The company had said the claim was without merit, backing the $23 per Regal share it paid for the $3.6 billion purchase that positioned it as a top competitor to U.S.-listed AMC Entertainment Holdings Inc (AMC.N).

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