Sunday, 09 December, 2018

Cineworld to create world's second biggest cinema company following Regal acquisition

Cineworld to create world's second biggest cinema company following Regal acquisition Cineworld to create world's second biggest cinema company following Regal acquisition
Nellie Chapman | 05 December, 2017, 18:57

Shares of Regal closed on Monday at $20.73 a share.

Regal Entertainment Group (NYSE:RGC) traded up $0.51 during trading on Wednesday, reaching $20.50.

The $23-a-share deal comes a week after the companies confirmed news reports of takeover discussions, jolting cinema-operator stocks. According to these analysts, the Low Revenue Estimate for Regal Entertainment Group is 867.3 Million and the High Revenue Estimate is 917.2 Million.

Regal Entertainment Group (NYSE:RGC) last released its earnings results on Tuesday, October 24th. The company reported the earnings of $0.07/Share in the last quarter where the estimated EPS by analysts was $0.05/share. The return on equity ratio or ROE stands at 13.4 percent while most common profitability ratio return on investment (ROI) was 5 percent. The company had Year Ago Sales of 812.6 Million. During the same period past year, the firm earned $0.29 earnings per share.

Cineworld said it expected the deal to "strongly" add to earnings in the first full year following completion, now expected in the first quarter of 2018.

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 15th.

The hefty rights issue which has caused most consternation among investors will be fully underwritten by Barclays, HSBC and Investec, raising £1.7bn. This represents a $0.88 dividend on an annualized basis and a yield of 4.29%. Regal Entertainment Group's payout ratio is 81.48%.

Regal Entertainment Group announced that its board has approved a stock repurchase plan on Thursday, August 31st that authorizes the company to repurchase $50.00 million in outstanding shares. Edge Advisors LLC now owns 174,421 shares of the company's stock worth $2,789,000 after purchasing an additional 23,174 shares during the period.

A number of large investors have recently modified their holdings of RGC. Following the sale, the executive vice president now owns 212,715 shares of the company's stock, valued at approximately $4,786,087.50. Paradigm Capital Management Inc. Bronfman E.L. Rothschild L.P. boosted its stake in Regal Entertainment Group by 169.5% during the 2nd quarter. In 2014, Cineworld bought Polish Cinema City International for about 500 million pounds and it acquired small, more highbrow United Kingdom chain Picturehouse for 47 million pounds in 2012. "Increases Position in Regal Entertainment Group (RGC)" was first published by The Lincolnian Online and is owned by of The Lincolnian Online. Institutional investors and hedge funds own 85.33% of the company's stock.