Cineworld Group PLC in the spotlight as gossip points to buyout

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Cineworld in the spotlight as gossip points to buyout Also on Tuesday’s agenda are construction PMI figures and a trading update from Ferguson Cineworld Group plc – Will Cineworld confirm speculations over plans to go private? On Tuesday the spotlight will fall on Cineworld Group plc (LON:CINE), where recent plot twists have included short-sellers and speculation that it may be taken private.

City chatter indicates the Anglo-American cinema chain may bid farewell the London Stock Exchange if the share price, now trading at near five-year lows, continues to plunge.

Analysts at Canccord Genuity suggested that this “could be the catalyst” for chief executive Mookie Greidinger’s family to take the business private.

The shares are the most shorted in the City, with 18% of the stock out on loan as hedge funds bet on a further plunge.

The market is still not sure whether last year’s £2.7bn acquisition of American cinema chain Regal was a sensible move, considering the sector has been struggling to drag consumers out of the comfort of their home where they can enjoy cheap and convenient streaming services.

The FTSE 250-listed firm’s trading update will reveal whether Hollywood blockbusters have come to the rescue as hoped, after it said earlier this summer it was looking for a revenue boost from the recently released ‘Frozen II’ and the launch of ‘Star Wars IX: The Rise of Skywalker’ just before Christmas to reach its year-end target after Regal’s box office intake dropped 18% in the first half.

A strong cinema offering would improve momentum but investors are unlikely to forget about the US$3bn debt pile plus the US$3.6bn in lease commitments.

Source: Cineworld Group PLC in the spotlight as gossip points to buyout