Cineworld Group has announced its plans to place up to 6.40m new shares, equal to 4.5 per cent of the company's currently issued share capital, to fund in part the acquisition of City Screen Group, which trades as Picturehouse.

A number of directors in the company have already said they plan to subscribe for a collective £250,000 worth of the shares.

The placing price has yet to be determined.

The company is acquiring Picturehouse for £47.3m on a cash and debt free basis. It is the UK's leading independent cinema operator with 21 sites (60 screens).

The rest of the acquisition is being funded from new debt under Cineworld's existing undrawn bank debt facilities.

The group added that trading has continued in line with market expectations for the financial year ending December 27th.

The share price rose 0.61% to 247.75p by 09:25.

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