UK - Blackstone sells Cineworld stake

Blackstone sold 38.1 million shares in a secondary placing at 165 pence per share, leaving the private equity giant with an approximate 20% holding in the business.

Cineworld, which operates 75 cinemas across the UK and Ireland, has seen its shares rise almost 50% in six months as a result of a slew of recent blockbusters. Profits in the company rose by 33% to £11.6m, up from £8.7m one year ago. Half-year box-office receipts were also up by 24.3% to £111.4m.

In 2004, Blackstone backed the £125m secondary buyout of Cineworld UK from Botts & Company, JPMorgan Capital Partners and RIT Capital Partners. Blackstone invested through its Blackstone Capital Partners IV fund, and assumed a majority stake in the business with the management holding the balance of the equity. Lehman Brothers provided a senior debt and working capital package to support the transaction.

One year later, the private equity group bought UGC's cinema operations in the UK and Ireland through the platform of Cineworld UK from France-based UGC SA, in a deal reported to be worth around £200m.

Blackstone exited part of its stake in the company when it took Cineworld public in 2007, at 170 pence per share. J.P Morgan advised Blackstone on the placing.

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• UK / Ireland