Billionaire Anschutz to Sell $303 Million of Regal Cinema Stockby
Billionaire Philip Anschutz plans to sell 13 million shares of Regal Entertainment Group, the nation’s largest cinema chain, in an underwritten offering valued at about $303 million at current prices.
After the sale, Anschutz Corp. will continue to control 74 percent of the voting power at Regal, according to a statement Tuesday from the movie chain. That will include 37 million Class A common shares and 23.7 million Class B shares that have 10 votes each.
Regal, based in Knoxville, Tennessee, abandoned efforts to find a buyer in January 2015 following a strategic review of options including a possible sale. Since then, No. 2 AMC Entertainment Holdings Inc. has agreed to buy Odeon & UCI Cinemas Group in the Europe and is pursuing Carmike Cinemas Inc., in the U.S., for $1.2 billion.
Regal fell 4.7 percent to $22.20 in extended trading after the announcement. It closed at $23.29 in regular trading in New York and is up 23 percent this year.
BofA Merrill Lynch will act as underwriter for the offering, Regal said.