British cinema operator Cineworld Group will buy Poland-based Cinema City International's movie theatre business for just over £500 million, doubling the number of its cinemas to create the second largest chain in Europe.

Cineworld, the UK’s only listed cinema chain, said the deal would create a chain of 201 cinemas with 1,852 screens, lagging only private equity-owned Odeon & UCI Group in Europe.

The cash and share offer will leave Cinema City owning a quarter of Cineworld, which is financing the purchase through a mix of shares, debt and a £110 million rights issue.

Investors welcomed the deal, pushing Cineworld shares up nearly 14 per cent, making them one of the top gainers on the London Stock Exchange. Cinema City shares jumped more than 17 per cent in Warsaw. – (Reuters)