Cineworld Group plc (LON: CINE) is in focus on Monday following reports that Elliott Management is interested in taking over the struggling cinema chain.
Here’s what we know about Elliott’s bid
A recent Sky News report suggests the activist investor wants to buy Cineworld’s operations in Israel and eastern Europe.
Elliott has considered bidding for the whole group, but its proposal, for now, leaves out the company’s operations in U.S. and the United Kingdom, the report added.
That’s primarily why the company’s shares remain rather dull this morning since the two regions make up the largest chunk of its business. The activist investor is known to take up positions in notable FTSE 350 names and push for strategic changes.
Versus its recent high, Cineworld stock is down more than 50% at writing.
CVC Capital is also interested in Cineworld
On Monday, CVC Capital Partners showed interest in the world’s second largest cinema chain as well. The private equity firm also wants to buy its business in Israel and eastern Europe only, though, and not the whole group.
Cineworld is open for final bids until April 10th. If necessary, it’ll proceed afterwards with an auction on April 17th. Both Elliott Management and CVC Capital Partners are yet to comment on the Sky News report.
Remember that the Brentford-headquartered firm filed for Chapter 11 bankruptcy protection in the United States last year as Invezz reported HERE. At the time, its net debt including lease liabilities was valued at about $8.9 billion.
Cineworld, however, signalled in February that it may come out of Chapter 11 bankruptcy protection before the back half of 2023.
The post Elliott and CVC bid for parts of Cineworld Group plc appeared first on Invezz.
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Wajeeh Khan
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