Cineworld buying Regal movie chain in global expansion

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Cineworld buying Regal movie chain in global expansion

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FILE - In this Tuesday July 26, 2011, file photo, people walk past Regal Entertainment's Palladium Cinemas in High Point, N.C. Cineworld is paying $3.61 billion for Regal Entertainment as it expands its global footprint. Cineworld has theaters in several nations, while Regal operates theaters throughout the U.S. (Don Davis Jr./The High Point Enterprise via AP, File)

Cineworld Group PLC is buying Regal Entertainment Group for $3.61 billion in a deal that gives the movie theater operator a larger global footprint.

Cineworld, based in the United Kingdom, is paying $23 cash per Regal share, marking an 11 percent premium over its closing price on Monday. The deal is valued at $5.9 billion including debt.

Regal, based in Knoxville, Tennessee, operates 7,315 screens in 561 theaters in the U.S. under brands including Regal Cinemas and United Artists. Cineworld operates 2,227 screens in nations including the U.K., Ireland, Poland, and Slovakia.

The deal is expected to close during the first quarter of 2018.

In morning trading, Regal shares rose 9.4 percent to $22.67. The stock is up 10 percent in the year to date.

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