News of a departing chief executive and chief financial officer rocked the boat at Cineworld (CINE) last year. But it looks like chief executive Stephen Weiner will go out with a bang: the group has announced a takeover of Polish rival Cinema City International in a transaction worth £900m.
IC TIP:
Buy
at
420p
Cannacord Genuity has said the deal - funded via the issue of 48m new shares and £272m of debt -will be earnings-enhancing. Analysts reckon the group's new debt burden is comfortable; the net debt to cash profits multiple of 2.5 times is expected to fall to approximately 2.2-2.3 times by the end of the 2014 financial year.
