Cineworld shares rise as firm buys Picturehouse

<p>Cineworld shares have slipped in London as the company looks to buy Picturehouse.</p>

Cineworld shares have jumped on the London Stock Exchange as the cinema chain buys Picturehouse in a major takeover bid.

The company has bought its rival for £47.3 million in an all-cash deal and will add Picturehouse's 21 venues to Cineworld's current 80 sites up and down the UK.

To fund the deal, the latter is to raise £16 million via means of a share flotation.

Chief executive of Cineworld Stephen Wiener said: "This acquisition gives us an opportunity to accelerate our growth by reaching new audiences in a high-value and growing part of the market."

Picturehouse – which centres on screening foreign and independent films – has promised the unique character of its organisation will continue to thrive after the papers are signed, bringing audiences a broad selection of movies.

At 11:55 GMT, Cineworld shares rose by 0.8 per cent on the London Stock Exchange to 248.25p per share.

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