UK cinema chain reveals float plans
The UK’s second largest cinema chain, Cineworld, announced plans to float today.
Shares in the Chiswick-based company, currently owned by private equity group Blackstone, will offered at between 155p and 185p a share on the London Stock Exchange on Friday, giving the company an indicative market value of up to £245.9m (€362.2m).
Cineworld, founded in 1995 by a management team including current chief executive Steve Wiener, plans to use the proceeds of the float to pay off debt following its 2004 acquisition of rival cinema group UGC. The management has a 10% stake in the company.
Blackstone will retain a 50% stake in the business, which has 72 multiplex cinemas featuring 753 screens and accounted for 42.9 million cinema admissions in the UK last year.
The company also considered floating in May last year but shelved plans due to volatile stock market conditions and work on the integration of the UGC cinemas.
Cineworld has now completed the rebranding of UGC and the company said it was looking to continue growth through boosting box office revenues, increasing customer spend, and growing its estate through other new openings and acquisitions.
Mr Wiener said: “We look forward to developing the business further to create future value for all our shareholders.”
The company, which opened its first multiplex cinema in Stevenage, Hertfordshire, in 1996, is now the second largest cinema operator behind Odeon. Vue is the third biggest group.
