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Movie Theater Stocks Spike On Rumors Of Regal Takeover

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Movie Theater Stocks Spike On Rumors Of Regal Takeover

Regal Entertainment Group (NYSE: RGC) spiked 15 percent and continued higher Tuesday on a Reuters report that London’s Cineworld Group plc proposed a $23-per-share takeover.

Regal did not immediately respond to requests for comment.

Notably, AMC Entertainment Holdings Inc (NYSE: AMC), Cinemark Holdings, Inc. (NYSE: CNK) and Imax Corp (USA) (NYSE: IMAX) all moved higher in sympathy, revealing investor optimism in market consolidation and receptivity to mergers in the movie exhibition space.

The Case For Regal

Earlier this year, Regal was on the other end of acquisition rumors, with analysts anticipating a purchase of AMC’s divested assets related to the Carmike deal.

The theater chain may now appear attractive to buyers considering its third-quarter earnings beat and earlier Street expectations for a special dividend.

Nonetheless, Regal trades down 18.4 percent year-over-year following a poor summer box office and increased competition from streaming platforms.

At time of publication, shares had waned to trade up 7.55 percent at a rate of $19.63.

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Posted-In: Carmike Cinemas Cineworld Group movie theatersM&A News Rumors Movers Best of Benzinga

 

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