9th Mar 2020 09:40
(Alliance News) - Cineworld Group PLC on Monday said Global City Theatres BV has agreed to sell an approximately 7.9% Cineworld stake for GBP116 million.
Shares in Cineworld were down 5.7% at 104.75 pence in London in morning trading.
After the deal, Global City Theatres' stake in the cinema chain will fall by around 108 million shares to approximately 275 million, or a 20% stake.
Under the deal, a GIC Pte Ltd affiliate has bought about 62 million Cineworld shares, around a 4.5% stake, from Global City Theatres.
Under a refinancing of Global City Theatres' financial arrangements, all share sale proceeds will go toward restructuring its margin loan from Barclays Bank PLC and HSBC Bank PLC, replacing it with a "new secured corporate loan facility, with no margining provisions or connection to the price of Cineworld ordinary shares".
Both Global City Theatres' shares, and shares in parent company Global City Holdings BV, are held in trusts for the benefit of Cineworld Chief Executive Moshe Greidinger's children - as well as the children of Deputy CEO Israel Greidinger.
Cineworld said Global City Theatres "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, which is headquartered in London, added that it: "Welcomes the transaction as a removal of any margin loan provisions in respect of the shareholding associated with its management."
By Anna Farley; [email protected]
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