Blackstone sells stake in Cineworld and buys in Broadgate
The private equity group, Blackstone, sold half of its 57 per cent stake in the Cineworld, in a move that dragged shares in the British cinema chain down by 9 per cent. Blackstone sold the 50 per cent of its stake in the Cineworld, which runs 75 sites in Britain, for around £62.9 million.
Cineworld, which was created in 1995, said its half-year profits soared to £11.6 million, up by 33 per cent as compared with £8.7 million last year.
On the other hand, Blackstone has bought 50 per cent stake in the Broadgate complex in London from British Land in a deal worth £77 million.
Under the deal, Blackstone will also shoulder 50 per cent of British Land's £1.97 billion debt.
Speaking his mind, Chris Grigg, the CEO of British Land, said, "The transaction increases our capacity for profitable investment opportunities elsewhere as we reinvest in more diversified, liquid assets."
Shares in British Land increased 17p to settle at 528p-a-share in the recent trading.
(Via TopNews United Kingdom. Contributed by Shamsher Singh)