Published: Wed, December 06, 2017
Markets | By Rosalie Gross

Cineworld Agrees To Buy Regal Entertainment For $3.6 Bln

Cineworld Agrees To Buy Regal Entertainment For $3.6 Bln

It emerged last week that FTSE 250-listed Cineworld was in talks with Regal, and on Tuesday the companies said they had reached an agreement for a reverse takeover, with Cineworld paying $23 a share for its larger peer. The company's P/E (price to earnings) ratio is 24.7 and Forward P/E ratio of 19.19. The Stock now has a Weekly Volatility of 8.70% and Monthly Volatility of 6.18%.

CNX Resources Corporation (NYSE:CNX) recent rally took place on significantly more volume which surged almost 4.6 million contracts on 04-Dec-17 versus its daily average of 3.94 million.

The Anschutz Corporation, the US-based media and entertainment group, which has 67 per cent of the voting power in Regal, has also agreed to the deal. They noted that the move was a valuation call. The company had Year Ago Sales of 812.6 Million. Year-to-date it plunged -0.49%. The company reported $0.32 earnings per share for the quarter, missing the consensus estimate of $0.36 by $0.04. Shareholders of record on Monday, December 4th will be paid a dividend of $0.22 per share. A rating of 4 or 5 would represent a Sell recommendation. Regal Entertainment Group's payout ratio is 81.48%. This buyback authorization allows the company to purchase up to 2.2% of its stock through open market purchases. Nationally recognized Johnson Fistel is investigating whether the proposed deal price represents adequate consideration, especially given one Wall Street analyst has a $24.75 price target on the stock. Analysts giving shares a rating of 1 or 2 would be indicating a Buy. Finally, Credit Suisse Group dropped their price target on Regal Entertainment Group from $17.00 to $13.00 and set an "underperform" rating on the stock in a research report on Thursday, September 28th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating, six have given a buy rating and one has given a strong buy rating to the company's stock. Regal Entertainment Group has an average rating of Hold and a consensus price target of $21.48.

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ILLEGAL ACTIVITY NOTICE: "Regal Entertainment Group (RGC) Short Interest Update" was originally published by The Lincolnian Online and is owned by of The Lincolnian Online.

Regal Entertainment Group is an operator of theatre circuits in the United States.

Following completion of the deal, Cineworld and Regal will have a combined 9,542 screens across the United States and Europe making it the second largest operator in the world by number of screens. The Company manages its business under theatre exhibition operations segment.

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