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Cineworld Group plc (CINE)

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Monday 09 March, 2020

Cineworld Group plc

Major shareholder to refinance margin loan

RNS Number : 4061F
Cineworld Group plc
09 March 2020
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO 596/2014

FOR IMMEDIATE RELEASE

9 March 2020

 

Cineworld Group plc ("Cineworld")

Major shareholder of Cineworld

Refinancing of Margin loan to corporate loan facility

 

Cineworld announces that it has been informed by Global City Theatres B.V. ("GCT") that this morning, GCT has agreed to sell c.108 million ordinary shares in Cineworld, representing c.7.9% of Cineworld's total issued share capital for proceeds of approximately £116 million. Following the sale, GCT will hold c.275 million ordinary shares in Cineworld (representing 20.0% of Cineworld's issued share capital).

As part of this sale, an affiliate of GIC Pte Ltd has acquired c.62 million ordinary shares in Cineworld (representing c.4.5% of Cineworld's total issued share capital) from GCT.

As part of a refinancing of GCT's financial arrangements, the aggregate proceeds of the share sale will be used to restructure the margin loan facility provided to GCT by Barclays Bank PLC and HSBC Bank PLC into a new secured corporate loan facility, with no margining provisions or connection to the price of Cineworld ordinary shares.

As previously disclosed, shares in both GCT and its parent company Global City Holdings B.V. are held in trusts for the benefit of the children of Moshe Greidinger, CEO of Cineworld, and Israel Greidinger, Deputy CEO of Cineworld.  The Cineworld board is pleased to confirm that GCT remains a committed long-term holder of Cineworld ordinary shares and Moshe and Israel Greidinger remain committed to Cineworld as members of the senior management team and retain a significant family interest in Cineworld.

The Company welcomes the transaction as a removal of any margin loan provisions in respect of the shareholding associated with its management.

 

Contacts:

Israel Greidinger
Nisan Cohen

+44 (0) 20 8987 5000
[email protected].co.uk

 

The person responsible for arranging the release of this announcement is Fiona Smith, Company Secretary of Cineworld.

 

 


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