The stock of Regal Entertainment Group (NYSE:RGC) closed at $22.68 gaining 9.30% in yesterday’s trading session. Britain’s Cineworld Group Plc has finally decided to purchase the U.S. movie theater operator Regal Entertainment after holding a series of discussion. Reports indicate that the transaction will be worth $3.6 billion in cash and is being seen as one of the expansion plans that will see it compete even more strongly in the market.
Market analyst have outlined that the new move will play a significant role towards making the merger a worthy rival to AMC Entertainment Holdings Inc (NYSE:AMC).
Netflix, Inc (NASDAQ:NFLX) has in the recent times indicated remarkable performance and this is also the other company that it needs to stage competition with in a world characterized with shifting market dynamics.
A person familiar with the matter opined, “The combined company is expected to deliver pretax benefits of $100 million, as well as additional annual benefits of $50 million. Cineworld expects to fund the deal through a rights issue to raise about 1.7 billion pounds ($2.3 billion), with the rest provided by committed debt facilities and existing cash.”
Cineworld happens to be one of the most ambitious companies around the globe. In its recent statement it outlined that it was looking forward to upholding its existing dividend policy. That will be after the deal is closed.
A lot if terms of funds are being channeled in the new development and the company is at the moment exploring other strategies that will help it make this a major success. Having qualified personnel at play will be one of the ways it will be ensuring that matters move according to plan.
A merger just like any other business undertaking requires a lot of dedication and proper planning. The company will be mobilizing resources and all within its reach to see to it that the move places it in the league of the trusted and recognized business giants globally.
The purchase of Regal Entertainment is no mean achievement and the company takes great pride in the move. A lot of eyes are fixed on it to see what comes out of the whole thing.