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Cineworld shareholder GCT sells 7.9% stake for ?116m
9th Mar 2020 08:03
(Sharecast News) - Cineworld said on Monday that shareholder Global City Theatres (GCT) has agreed to sell around 7.9% of the company, or 108m shares, for approximately ?116m.
Singapore sovereign wealth fund GIC has bought around 62m shares in Cineworld as part of the sale, representing a 4.5% stake.
Following the sale, GCT will hold a stake of around 20%, or 275m shares.
Cineworld said the proceeds of the share sale will be used to restructure the margin loan facility provided to GCT by Barclays Bank and HSBC Bank into a new secured corporate loan facility, with no margining provisions or connection to the price of Cineworld shares.
Shares in both GCT and its parent company Global City Holdings B.V. are held in trusts for the benefit of the children of Moshe Greidinger, chief executive officer of Cineworld, and Israel Greidinger, deputy CEO of Cineworld.
"The Cineworld board is pleased to confirm that GCT remains a committed long-term holder of Cineworld ordinary shares and Moshe and Israel Greidinger remain committed to Cineworld as members of the senior management team and retain a significant family interest in Cineworld.
"The company welcomes the transaction as a removal of any margin loan provisions in respect of the shareholding associated with its management."
Singapore sovereign wealth fund GIC has bought around 62m shares in Cineworld as part of the sale, representing a 4.5% stake.
Following the sale, GCT will hold a stake of around 20%, or 275m shares.
Cineworld said the proceeds of the share sale will be used to restructure the margin loan facility provided to GCT by Barclays Bank and HSBC Bank into a new secured corporate loan facility, with no margining provisions or connection to the price of Cineworld shares.
Shares in both GCT and its parent company Global City Holdings B.V. are held in trusts for the benefit of the children of Moshe Greidinger, chief executive officer of Cineworld, and Israel Greidinger, deputy CEO of Cineworld.
"The Cineworld board is pleased to confirm that GCT remains a committed long-term holder of Cineworld ordinary shares and Moshe and Israel Greidinger remain committed to Cineworld as members of the senior management team and retain a significant family interest in Cineworld.
"The company welcomes the transaction as a removal of any margin loan provisions in respect of the shareholding associated with its management."