Cineworld refuses to negotiate with Odeon owner about selling its cinemas

Cineworld’s shares fell further after it denied talks with Odeon owner AMC Entertainment over a possible acquisition – although AMC said it had pulled out of negotiations with its electric rival. photo was struggling last month.

ineworld would not comment on who AMC claims to have spoken to about the possibility of selling its cinemas, but said there have been no discussions with business officials, advisors or lenders their.

It said: “According to recent media reports, Cineworld would like to clarify that neither they nor their advisors entered into discussions with AMC Entertainment regarding the sale of any of their cinematic assets. .

“Cineworld also understands that neither the group of special lenders in its 2018 credit facility nor its advisors participated in discussions with AMC.”

It contradicts a statement from AMC in December, which said it was in discussions with Cineworld’s lenders about the chain’s plans to acquire “several strategic theatrical assets” in the US and Europe – following that negotiations were cancelled.

Cineworld, which operates the world’s second-largest movie theater chain, filed for bankruptcy protection in the US in September after suffering a major hit from a weaker-than-expected audience over the summer.

The group said it is conducting a marketing process in an effort to sell its property at a good price and expects to begin contacting potential buyers this month.

It is part of a plan to restructure the group and exit bankruptcy in the first three months of this year, which will maximize value for “movie audiences and all other stakeholders.”

The group said there is “no guarantee of any recovery” for Cineworld shareholders if they agree to a transaction.

“As previously announced, it is expected that any restructuring or sale that has been agreed upon with related parties will result in a very substantial dilution of existing equity interests. in Cineworld,” it said in a statement.

Shares of Cineworld fell about 15% on Tuesday morning following the announcement.

Its share price has plummeted more than 80% in the past six months.