Cineworld Group Plc (LON: CINE) shares today surged 4.13% reversing a 3-day losing streak as buyers finally stepped in and drove the stock higher.
Today’s rally was not driven by any positive news releases and could be attributed to a delayed reaction to news about Chinese tycoon Liu Zaiwang acquiring a 5.1% stake in the movie theatre chain.
Investors are optimistic that the cinema operator could be taken private at a premium to current prices given the lifting of the Paramount decrees in the US earlier this month.
Cineworld is also set to benefit from the premier of several new movies which could attract large audiences to its theatres globally. Movies such as “Tenet,” “Unhinged,” “The New Mutants,” and “Words on Bathroom Walls” are likely to fuel a surge of moviegoers back to the theatres.
The firm also recently reported that its largest shareholder Global City Theatres (GCT) had agreed to refinance loans attached to its 20% shareholding in Cineworld giving the firm a much needed 3-year break on payments.
Cineworld share price
Cineworld shares today surged 4.13% to trade at 60.46p having risen from yesterday’s closing price of 58.06p.