A lawsuit was filed for investors in shares of Regal Entertainment Group (NYSE:RGC) in connection with the proposed takeover and NYSE:RGC stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/07/2018 -- The Shareholders Foundation announces that an investor, who currently holds shares of Regal Entertainment Group (NYSE:RGC), filed a lawsuit against the acquisition of Regal Entertainment Group. by Cineworld Group PLC is unfair.
Investors who purchased shares of Regal Entertainment Group (NYSE:RGC) should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:RGC stockholders by agreeing to sell Regal Entertainment Group cheaply via an unfair process to Cineworld Group PLC.
On December 5, 2017, Regal Entertainment Group (NYSE:RGC) announced that it has entered into a merger agreement with Cineworld Group PLC for Cineworld Group PLC to acquire Regal Entertainment Group (NYSE:RGC). Under the terms of the Agreement, Regal Entertainment Group (NYSE:RGC) stockholders are to receive $23.00 in cash for each share of Class A and Class B common stock, for a total transaction value of $5.9 billion, including the assumption of debt and net of cash acquired.
However, plaintiff claims that the proposed consideration NYSE:RGC shareholders will receive is grossly inadequate and undervalues Regal Entertainment Group. Indeed, at least one analyst has set the high price target for NYSE:RGC shares at $24.75 per share. Regal Entertainment Group reported that its annual Total Revenue rose from over $3.12 billion in 2015 to over $3.19 billion in 2016 and that its Net Income increased from $153.40 million in 2015 to $170.40 million in 2016.
In addition, the plaintiff alleges that the process is also unfair NYSE:RGC stockholders. Indeed, Global City Holdings B.V. ("GCH") and the trustee of trusts of which Cineworld's Chairman, Anthony Bloom, is a potential discretionary beneficiary, collectively owning approximately 28.8% of Cineworld's ordinary shares, have already signed irrevocable undertakings to vote in favor of the transaction and rights offering.
Those who are current investors in Regal Entertainment Group (NYSE:RGC) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego