Premarket London: Cineworld Deal; FirstGroup Eyes U.S. Bus Ops Sale

This post was originally published on this site

© Reuters. © Reuters.

Investing.com — Here is a summary of the most important regulatory news releases from the London Stock Exchange on Monday, 16th December. Please refresh for updates.

  • Retailer Sports Direct (LON:) reported a 6.1% decline in organic, currency-adjusted group revenues in the six months through October.
  • Overall revenue increased by 14% to 2.04 billion pounds thanks to past acquisitions including Game Digital, which contributed 133.9 million pounds.
  • Underlying EBITDA was up 22% to £181.2m.
  • The group cited its new elevation strategy – an investment program to pep up the appearance of its stores – as the reason for the overall drop.
  • Mike Ashley’s empire, which bought department store House of Fraser in 2018, said profit before tax increased by 160% to £193.4m due to improved underlying operating performance and an £84.9m gain arising from the sale of one of its distribution centers.
  • Train and bus operator FirstGroup (LON:) has given in to pressure from shareholders Robert Tchenguiz and Coast Capital, and appointed advisors to review its North American contract businesses First Student and First Transit, with a view to a possible sale.
  • The news comes around a month after FirstGroup’s share price tumbled after it wrote down the valuation of its Greyhound bus operations in the U.S., which it has been trying to sell since May.
  • The decision “reflects the resolute focus of the entire Board on realising value for all shareholders,” CEO Matthew Gregory said.
  • Cinema operator Cineworld (LON:) proposed to buy Cineplex, Canada’s largest operator of movie theaters, for 2.8 billion Canadian dollars in cash (US$2.21 billion). Global City Theatres BV, Cineplex’s largest shareholder, has already agreed to the deal.
  • The deal will be financed by debt. Cineworld said it expects $130 million of annual synergies, and a boost of over 10% to earnings per share in the first year following completion. It will aim for a net debt/EBITA ratio of 3x by the end of its fiscal 2021 year.
  • Cineplex runs 165 cinemas and 1,695 screens and has a 75% market shares in Canada. The portfolio would significantly strengthen Cineworld’s position, given its ownership of the Regal chain of theaters in the U.S., which it is currently revamping.
  • “The combination of Cineplex and Regal will create the leading North American cinema operator with unrivalled scale and opportunity,” said CEO Mooky Greidinger.
  • NMC Health (LON:) said it intends to buy back up to $90 million of its convertible bonds due 2025, noting that their current price of 89.5c represents an attractive opportunity to manage its liabilities.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment