With a view to creating the continent’s second-largest multiplex chain by market share, Cineworld Group plc - UK’s biggest cinema group, is set to acquire Cinema City International, a Warsaw-listed chain with screens in seven countries across central and eastern Europe, for GBP 503 m in cash and shares. As a result of the deal, Cineworld, UK's only listed cinema chain, would create a chain of 201 cinemas with 1,852 screens.
Cineworld is financing the purchase through a mix of shares, debt and a GBP 110 m rights issue.
Cineworld was advised by Barclays Bank, while CCI was advised by HSBC Bank.
K&P acted on the Bulgarian chapter of the deal, including provisions of the Finance Documents from Bulgarian law perspective, release of existing Bulgarian Financial Collateral through pledge of shares and dividends, etc.
Under a preceding bank transaction, completed in February 2013, K&P acted on the Bulgarian chapter of a deal for financing Cinema City International N.V. by a consortium of banks including HSBC Bank plc., ING Bank N.V., Bank Zahodny WBK S.A. and ING Bank Slaski S.A., where ING Bank N.V. acted as Agent and Security Agent for the Finance Parties. K&P elaborated the mechanism for establishing and perfecting a security interest under the Finance Documents.