18 Sep 2009 12:15
18 September 2009
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION INTO OR IN THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN
SECONDARY PLACING OF ORDINARY SHARES IN CINEWORLD GROUP PLC ("Cineworld" or the "Company")
Cineworld today has been informed that J.P. Morgan Cazenove Limited ("J.P. Morgan Cazenove") has completed a secondary placing (the "Placing") of 38.1 million ordinary shares in Cineworld on behalf of the selling shareholder, The Blackstone Group ("Blackstone") representing in aggregate c. 57 per cent. of Blackstone's holding, at a price of 165p per share.
Following this Placing, Blackstone continues to own in aggregate 28.5 million ordinary shares in Cineworld, representing c.20.1% of the issued share capital of the Company. Blackstone has consented to a lock-up of 90 days with respect to its residual holding, subject to customary exceptions. There are no Board changes envisaged following the Placing.
Commenting on the Placing, Lawrence Guffey, Senior Managing Director of Blackstone said, "Blackstone took advantage of strong markets to sell approximately half of our remaining position, generating attractive gains for our limited partners and reducing any stock overhang issues for Cineworld. We are pleased to continue our five year affiliation with the Company and remain as its largest shareholder. We thank Steve Wiener and the management team for their outstanding performance."
Steve Wiener, CEO of Cineworld, commented "We believe today's placing reflects Cineworld's significant outperformance compared to the wider stock market since its IPO in 2007. This move brings greater liquidity to our shares and we believe this will benefit all of our shareholders over the longer term. Blackstone has made a tremendous contribution to the Company over the last five years and we look forward to its close involvement as we continue to grow our business."
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Enquiries:
J.P. Morgan Cazenove +44 (0)20 7588 2828
Rupert Sadler
Nicholas Hall
M:Communications +44(0)20 7920 2348
Georgina Briscoe
Neither this announcement nor any copy of it may be taken, transmitted or distributed, directly or indirectly in or into the United States, Canada, Australia or Japan. Any failure to comply with this restriction may constitute a violation of United States, Canadian, Australian or Japanese securities laws.
The distribution of this announcement and the offering or sale of the shares in certain jurisdictions may be restricted by law. No action has been taken by any person that would permit an offer of the shares or possession or distribution of this announcement or any other offering or publicity material relating to the shares in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required to inform themselves about and to observe any such restrictions. The shares have not been, and will not be, registered under the US Securities Act of 1933, as amended. This announcement is not an offer of shares for sale in the United States. The shares may not be offered or sold in the United States absent registration or an exemption from registration. There will be no public offering of shares in the United States.
J.P. Morgan Cazenove is acting for Blackstone only in connection with the Placing, and no one else, and will not be responsible to anyone other than Blackstone for providing the protections offered to clients of J.P. Morgan Cazenove nor for providing advice in relation to the Placing.