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Luxembourg-based private equity firm CVC Capital Partners has approached Cineworld Group PLC about an offer for its operations in eastern Europe and Israel, Sky News reported on Monday. According to ‘city sources’, CVC and Cineworld are in talks about a potential offer for the operations. In addition to the UK and the US, Cineworld operates in Bulgaria, Czech Republic, Hungary, Romania, Slovakia and Israel. CVC is believed to have evaluated an offer for Cineworld several years ago, Sky said. https://news.sky.com/story/buyout-titan-cvc-screens-rival-offer-for-cineworld-assets-12843417 Shares in Cineworld were up 7.1% to 2.52 pence each in London on Monday. The stock is down 93% over the past 12 months. On Saturday, Sky News reported US activist investment firm Elliott Management is planning to take over the beleaguered cinema chain’s operations outside of the UK and the US. Citing ‘insiders’, Sky News had said that Elliott has tabled a bid for the Brentford, London-based firm’s operations in eastern Europe and Israel. Elliott had also explored a bid for the whole of Cineworld, but its most recent proposal excludes its UK and US operations, Sky said. A month ago, Cineworld said it has received non-binding proposals from a number of counterparties for some or all of its businesses, but the debt-ridden business expects any deal with its creditors will wipe out its shareholders. ‘None of these proposals involves an all-cash bid for the entire business,’ the beleaguered cinema chain had confirmed. Back in September 2022, Cineworld confirmed it was beginning a Chapter 11 filing in US Bankruptcy Court in Texas, as it grappled with liquidity woes. It had first announced it was considering a Chapter 11 filing on August 22, and any deleveraging would likely result in a ‘very significant dilution’ of its shares. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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