TORONTO — Cineplex Inc. has entered into a definitive agreement with U.K.-based Cineworld Group, plc that will see the latter pay $34 in cash for Each Cineplex common share. The total transaction value is approximately $2.8 billion, including the assumption of net debt.
“Since Cineplex went public in 2003, we’ve been committed to delivering value to our shareholders. We believe this transaction today is both financially compelling and in our shareholders’ best interest,” says 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’re ensuring Cineplex is part of the next era of global entertainment.”
Cineplex encompasses a network of 165 movie theatres across Canada, a digital-commerce platform (CineplexStore.com), foodservice, alternative programming (Cineplex Events), cinema media (Cineplex Media), digital place-based media (Cineplex Digital Media), amusement solutions (Player One Amusement Group) and an online e-sports platform (WorldGaming Network). The company also operates Playdium, The Rec Room and will be opening new Topgolf sports-and-entertainment venues across Canada.
The transaction is subject to shareholder approval and is subject to customary closing conditions including regulatory approvals. If approved, it stands to create one of the world’s largest cinema companies, comprising more than 11,200 screens around the globe.