Cineworld Faces More Uncertainty As Second Largest Shareholder Cuts Stake, After Another Big Investor Cuts Ties

deadline.com:

Cineworld, the world’s second largest cinema chain, faces fresh uncertainty after its second largest shareholder cut its stake, causing shares to fall in value for a second day.Stock closed 31.4% down after a stock exchange filing revealed that the Chinese Jangho Group – which began building its stake only two years ago – had reduced its holding from 13.7% to 11.6%, reports the Times.Jangho remains the group’s second biggest shareholder after Global City Holdings, the family investment business of Cineworld boss Mooky Greidinger.Jangho’s holding reduction comes just a day after another of Cineworld’s big investors, Polaris Capital Management, were revealed to have cut ties with the cinema chain, and completely offloaded its 3.5% holding.Like many cinema chains, Cineworld has struggled to bring business back to pre-pandemic levels.

Although Tom Cruise has scored this year’s largest theatrical hit with Top Gun: Maverick, he seems a lone A-lister who can still draw the crowds away from streaming.

Brad Pitt’s recent Bullet Train struggled, although it has now recouped $150m box office.In response to recent speculation, Cineworld has provided an update to its August 17 announcement regarding an evaluation of strategic options to both obtain additional liquidity and potentially restructure its balance sheet through a comprehensive deleveraging transaction.Reiterating that Cineworld’s theaters, including the Regal chain in the U.S., are “open for business as usual and continue to welcome guests and members,” the world’s second largest exhibitor said that the strategic options through which it may achieve its restructuring objectives “include a possible voluntary Chapter 11 filing in the United States and associated ancillary