Knoxville, Tennessee (January 23, 2018) – Regal Entertainment Group (NYSE: RGC) (“Regal”) a leading motion picture exhibitor owning and operating one of the largest theatre circuits in the U.S. today announced the expiration of the “go-shop” period pursuant to the terms of the previously announced merger agreement (the “Merger Agreement”), which provides for the acquisition of Regal by Cineworld Group plc (LON: CINE) (“Cineworld”), the U.K.’s largest cinema operator. Under the terms of the Merger Agreement, Regal and its representatives were permitted to solicit, initiate, discuss and engage in negotiations with respect to alternative acquisition proposals from third parties until midnight (New York City time) on January 22, 2018 (the “go-shop” period).
During the “go-shop” period, with the assistance of Morgan Stanley & Co. LLC, Regal solicited 11 potential strategic bidders and 36 potential financial bidders (including private equity sponsors, family offices and sovereign wealth and pension funds), for a total of 47 potentially interested parties in connection with the “go-shop” period, which resulted in two parties negotiating and entering confidentiality agreements with Regal. Despite its solicitation efforts, Regal did not receive any alternative acquisition proposals during the “go-shop” period.
Immediately following the expiration of the “go-shop” period, Regal became subject to customary restrictions that limit Regal and its representatives’ ability to solicit or engage in discussions regarding alternative acquisition proposals from third parties, except as otherwise permitted by the Merger Agreement prior to receipt of the approval of the transaction from Regal’s stockholders, including in connection with the compliance by Regal’s Board of Directors with its fiduciary duties under applicable law.
About Regal Entertainment Group
Regal Entertainment Group (NYSE: RGC) operates one of the largest and most geographically diverse theatre circuits in the United States, consisting of 7,321 screens in 560 theatres in 43 states along with Guam, Saipan, American Samoa and the District of Columbia as of December 31, 2017. Regal operates theatres in 48 of the top 50 U.S. designated market areas. Regal believes that the size, reach and quality of Regal’s theatre circuit not only provide its patrons with a convenient and enjoyable movie-going experience, but is also an exceptional platform to realize economies of scale in theatre operations.