WARSAW, Feb 7 (Reuters) – The board of directors at
Warsaw-listed Global City Holdings said late on Friday
they wanted the group to delist from the Warsaw Stock Exchange
, offering shareholders around 40 zlotys per each share.

The offer, which values the company at 2.05 billion zlotys
($557.9 million) or 8 percent below the current market value, is
to be discussed at an initial shareholder meeting in Warsaw on
March 10 and then go to a vote on March 20 in Rotterdam.

Global City listed in Warsaw in 2006 as Cinema City
International. Following a 2014 cash and share deal the group
became the largest shareholder in British cinema operator
Cineworld, Europe’s No.2 cinema chain.

The Warsaw-listed holding company, controlled by the Israeli
Greidinger family, which founded Cinema City, also owns almost
40 percent in real-estate developer Ronson Europe.

“It is estimated that a termination of the Company’s Warsaw
Stock Exchange (WSE) listing will generate a cost saving of
approximately 1 million euros per annum,” the directors said in
a statement.

“As a holding company rather than an operating business with
a recognizable name, the majority of the company’s value
consists of its holdings in public companies such as Cineworld
and Ronson. As such the listing on the WSE adds minimal value to
the company.”

According to the board of directors, Global City’s majority
shareholder ITIT supports delisting plans.

The company’s minority shareholders include Polish pension
funds run by Aviva (Other OTC: AIVAF – news) , ING, and Nordea.
($1 = 3.6747 zlotys)

(Reporting by Adrian Krajewski; Editing by Michael Urquhart)