UPDATE 1-Cineworld pays $170 mln to Regal buyers sad with 2017 buyout

(Provides background)

Sept 10 (Reuters) – Cineworld, the world’s second-largest film theatre operator, stated it can pay $170 million to Regal Leisure shareholders, who have been disgruntled with the worth they obtained when the London-listed firm took over the U.S. chain in 2017.

Based on an settlement, $92 million can be held in escrow and be obtainable to Cineworld as further liquidity underneath sure circumstances for the fee, Cineworld stated on Friday.

The corporate, with a debt load of $8.44 billion in comparison with its market worth of about $1.19 billion, has taken a hammering for the reason that onset of the pandemic, which noticed it burn by way of money as cinemas have been shut for lengthy intervals as a result of restrictions.

Cineworld included $244.2 million in its final annual report, which it stated represented the quantity payable to a gaggle of Regal’s former stakeholders who had challenged whether or not they obtained a good market worth for his or her shares.

The corporate had stated the declare was with out benefit, backing the $23 per Regal share it paid for the $3.6 billion buy that positioned it as a prime competitor to U.S.-listed AMC Leisure Holdings Inc. (Reporting by Muvija M in Bengaluru; Modifying by Shounak Dasgupta)

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