Cineplex to be acquired by Cineworld Group
Cineplex Inc., one of Canada’s leading entertainment and media companies is to be acquired by Cineworld Group, according to a recent announcement. With over 11,200 screens around the globe, the proposed transaction will create one of the world’s largest cinema companies. Through the transaction, Cineplex expects to achieve greater scale and benefits associated with a global enterprise.
Cineworld Group will acquire all of the issued and outstanding common shares of Cineplex for $34 per share in cash. The total transaction value is approximately $2.8 billion including the assumption of net debt.
“Since Cineplex went public in 2003, we have been committed to delivering value to our shareholders. We believe this transaction today is both financially compelling and in our shareholders best interest,” said Ellis Jacob, president and CEO, Cineplex. “Cineworld Group shares our passion for entertainment and mirrors our commitment to delivering exceptional guest experiences through state-of-the-art technology. The entertainment industry continues to transform and we are pleased that through this agreement we are ensuring Cineplex is part of the next era of global entertainment.”
The transaction ensures that Cineplex’s business, particularly its network of 165 movie theatres across Canada, has access to the global opportunities required to compete effectively in an evolving entertainment landscape.
The transaction also creates a new partner for the Canadian film industry to collaborate with, as Cineworld Group has extensive distribution and exhibition businesses outside of Canada.