Cinema group Everyman has raised £20m to buy four sites from Odeon as it seeks to accelerate its rollout plan.
The company, which currently owns and runs 11 cinemas in the UK with another due to open in Canary Wharf in May, raised the money via the placing of 23,529,412 Ordinary Shares at 85p per share. The shares have been conditionally placed by Cenkos, as agent for the company, with existing shareholders and new institutional investors.
The proceeds will fund the £7.1m acquisition of Odeon’s cinemas in Gerrards Cross, Esher, Muswell Hill and Barnet. The company expects to spend c£6.1m on refurbishments.
Everyman said the sites have reported unaudited revenue of £3.6m and an EBITDA of approximately £500,000 for the 12 months ended December 2014 with a “significantly improved level of financial performance” expected after the takeover.
The remaining proceeds will go towards the further rollout of the Everyman estate in 2016 and beyond. The Group has already exchanged contracts on sites in Harrogate and Cirencester and the company says it believes there is potential to accelerate the group’s number of annual openings following completion of the placing.
