CVC Capital said to plan bid for parts of Cineworld
Cineworld has reportedly been approached by buyout firm CVC Capital Partners about a takeover of parts of the struggling group.
According to Sky News, CVC is in talks with Cineworld and its advisers about an offer for its operations in eastern Europe and Israel.
City sources told Sky that CVC was vying with activist investor Elliott Management to acquire the assets, months after the cinema chain filed for Chapter 11 bankruptcy protection in the US.
CVC has been a prolific investor in leisure and entertainment businesses in the UK, having previously owned William Hill, the bookmaker, and Formula One motor racing, Sky noted. It is said to have evaluated an offer for Cineworld several years ago.
Elliott's interest in Cineworld was revealed by Sky News at the weekend.
It was unclear on Monday whether other potential buyers were also circling the stricken group, which has seen its shares collapse by over 90% during the last year.
Neither CVC nor Elliott are currently pursuing offers that would encompass Cineworld's UK or US businesses.
Rival cinema operator Vue International was recently frozen out of the auction process after amassing financial backing for an offer.
In a stock exchange announcement last Friday, Cineworld reiterated that it "remains in discussions with its key stakeholders with a view to developing a Chapter 11 plan of reorganisation that maximises value for the benefit of the Group and its stakeholders".
"The marketing process, which was announced on 3 January 2023, is continuing in parallel.
"As previously announced, it is not expected that any plan of reorganisation or sale transaction would result in any recovery for Cineworld's shareholders."
PJT Partners, the investment bank, is advising Cineworld on the sale process.
At 1230 GMT, Cineworld shares were up 8.5% at 2.55p.