U.S. Markets closed

UPDATE 1-Cineworld pays $170 mln to Regal investors unhappy with 2017 buyout

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

(Adds background)

Sept 10 (Reuters) - Cineworld, 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. (Reporting by Muvija M in Bengaluru; Editing by Shounak Dasgupta)