Cineworld denies talks with Odeon owner over sale of its cinemas

Cineworld has denied being in talks with Odeon owner AMC Entertainment over a potential buyout – despite AMC saying it backed out of talks with the troubled cinema rival last month (Paul Weston/Alamy/PA)

Cineworld has denied being in talks with Odeon owner AMC Entertainment over a potential buyout – despite AMC saying it backed out of negotiations with the troubled cinema rival last month.

Responding to recent media reports, Cineworld said neither it nor its advisers or lenders have ever been in talks with AMC over the sale of its cinemas.

It contradicts a statement from AMC in December, which said it had been in discussions with the lenders of Cineworld over plans to acquire “certain strategic theatre assets” of the chain in the US and Europe – with negotiations since abandoned.

The group said it is going ahead with a marketing process in efforts to sell its assets for a good value and expects to begin contacting potential buyers this month (Yau Ming Low/Alamy/PA)

Cineworld, which runs the second-largest chain of cinemas in the world, filed for bankruptcy protection in the US in September after taking a big hit from weaker-than-expected audience numbers over the summer.

The group said it is going ahead with a marketing process in efforts to sell its assets for a good value and expects to begin contacting potential buyers this month.

It forms part of its plans to restructure the group and emerge from bankruptcy in the first three months of this year, which will maximise value for “moviegoers and all other stakeholders”.

The group said there is “no guarantee of any recovery” for shareholders in Cineworld if it does agree to a transaction.

“As previously announced, it is expected that any restructuring or sale transaction agreed with stakeholders will result in a very significant dilution of existing equity interests in Cineworld”, it said in a statement.