In re Appraisal of Regal Entertainment Group
Delaware Chancery Court
2021 WL 1916364 (2021)
- Written by Steven Pacht, JD
Facts
Regal Entertainment Group (Regal) was a publicly traded corporation with a controlling shareholder. Cineworld Group plc (Cineworld) (defendant) acquired Regal in a merger for $23 per share. Dissenting owners of Regal stock (plaintiffs) sought an appraisal of the fair value of Regal’s stock as of the merger’s closing date. At trial, the parties presented three valuation methodologies: (1) a discounted-cash-flow (DCF) analysis, (2) an unaffected trading-price analysis (trading-price methodology), and (3) an analysis based on the deal price (deal-price methodology).
Rule of Law
Issue
Holding and Reasoning (Laster, J.)
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