Cineworld announces Cinema City International acquisition

<p>Cineworld stocks soared on the back of the news.</p>

The share price of Cineworld is strongly up this morning (January 10th), after the company announced the acquisition of Cinema City International (CCI).

It was confirmed that Cineworld has bought CCI, which is a leading cinema business in seven countries across central and eastern Europe.

The transaction is based on an enterprise value of Cinema City – which Cineworld noted is based on a debt free and cash free basis – of approximately £503 million.

Investors responded positively to the acquisition and stocks in Cineworld rose by more than six per cent in the early stages of trading this morning.

By 10:22 GMT, stocks were almost seven per cent higher and were still rising. Shares were selling at 419.00, which is close to a new 52-week high for the company.

In a statement, Cineworld said: "The combination with Cinema City will create the second largest cinema business in Europe with the number one or number two market share (by number of screens) in every region of operation."

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