Redstone set to sell CBS and Viacom shares to meet debt payment

National Amusements operates more than 1,500 movie screens in the US, UK, Latin America and Russia, under its Showcase, Multiplex, Cinema de Lux and KinoStar brands. It is also the parent company of both Viacom and CBS Corporation.

Viacom announced today (14 October) that National Amusements intends to offer for sale some of Viacom and CBS' shares to raise around $600m.

Viacom added that the move would allow it to retain controlling interests in both CBS and Viacom.

Redstone owns 80% of National Amusements, while his daughter Shari holds the remaining 20%.

He had reportedly planned to sell most of National Amusements' theatre operations to cover a looming $500m debt payment.

But with an improvement in his financial position, Redstone decided to hold on to the cinemas. In recent months, shares of Viacom, which owns MTV Networks, Nickelodeon and Paramount Pictures, and CBS Corp have shot up in value.

Amid the global financial crisis last year, the value of CBS and Viacom fell, triggering a violation of National Amusements' covenants on $1.6bn in debt.