U.S. movie theater operator, Regal Entertainment (NYSE:RGC), gained markedly on news of Cineworld Group’s interest in acquiring Regal for a large premium. With this acquisition, Cineworld will become the second largest theater chain in the world, with a foothold in the U.S., Central/Eastern Europe and the U.K. The Fund began the purchase of Cineworld during the quarter, as the company presented a compelling investment opportunity, with an attractive valuation, healthy cash flows, proven business operations and history of immediately accretive acquisitions.
From the Polaris Global Value Fund fourth quarter 2017 shareholder letter.
