A UK company proposing to take over an American company three times its size? “People thought we were crazy,” Mooky Greidinger says. It wasn’t a typical deal. It was an anomaly. When the brothers decided to seize the opportunity, Barclays was there to support their vision.
Cineworld had banked with Barclays for a long time, so there was a deep relationship and an inherent level of trust, as well as a strong knowledge of the business and industry. And with a large presence in the US and the UK, Barclays had the cross-border capabilities and acumen to help make the deal happen.
Barclays was a lead bank on the deal that moved Cineworld to an implied enterprise value of US$5.8bn, acting as Financial Advisor and Corporate Broker to Cineworld as well as Joint Global Coordinator and Joint Underwriter on both the rights issue and debt acquisition financing. Barclays also provided Ratings Advisory services as well as risk and hedging solutions to Cineworld in the context of the acquisition.
From start to finish, the deal took just six months because of the determination of the large team of bankers and Cineworld’s senior management team, under the leadership of the Greidinger brothers. To ensure that investors maintained their confidence in the brothers and their vision, Israel and Mooky committed to maintaining their ownership level in Cineworld at 28% and buying into the rights issue.