Regal to be acquired by Cineworld in a deal worth $3.6bn

Regal to be acquired by Cineworld in a deal worth $3.6bn

Regal to be acquired by Cineworld in a deal worth $3.6bn

Andy Miles, chief executive of Regal, said the offer from Cineworld "represents a meaningful premium" on its share price, while providing "compelling value for our stockholders".

Looking forward, the company's quarterly earnings are expected to come at $0.59 in the three months through November 2017 and $0.59 in the quarter ending February 2018, reflecting 5.36% and 7.27% growth, respectively.

Regal Entertainment Group most recently reported earnings per share (EPS) of $0.07 for the September 2017 versus $0.29 in the same quarter past year, representing -76% growth.

The transaction was approved unanimously by Cineworld's and Regal's board of directors. Finally, KCG Holdings Inc. increased its stake in shares of Regal Entertainment Group by 69.5% in the third quarter. Analysts reported that the Price Target for Regal Entertainment Group might touch $24.75 high while the Average Price Target and Low price Target is $21.44 and $17 respectively.

It emerged last week that FTSE 250-listed Cineworld was in talks with Regal, and on Tuesday the companies said they had reached an agreement for a reverse takeover, with Cineworld paying $23 a share for its larger peer. Regal Entertainment Group had a negative return on equity of 16.36% and a net margin of 4.41%. Based on an average daily volume of 5,155,221 shares, the days-to-cover ratio is now 6.7 days.

The Relative Volume of the company is 2.07 and Average Volume (3 months) is 4.92 million. The company had revenue of $716.00 million for the quarter, compared to analysts' expectations of $701.66 million. The stock has a market capitalization of $3.22 billion, a P/E ratio of 18.09 and a beta of 0.92. California State Teachers Retirement System now owns 175,987 shares of the company's stock valued at $3,828,000 after buying an additional 1,700 shares during the last quarter. The ex-dividend date of this dividend is Friday, December 1st. This represents a $0.88 dividend on an annualized basis and a yield of 4.29%. Regal Entertainment Group's payout ratio is 81.48%. Wedbush set a $20.00 price target on Regal Entertainment Group and gave the stock a "buy" rating in a research report on Wednesday, October 25th. If you are reading this report on another publication, it was illegally copied and reposted in violation of worldwide trademark and copyright law.

Cineworld has offered $23 a share for Regal, the second-largest cinema chain in the USA, as announced last week when it confirmed that the two companies were in talks.

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