Cineplex Odeon Theater at Dundas Square in Toronto on December 16, 2019. Cineworld Group's deal to acquire Cineplex Inc. cleared another hurdle after a "go-shop" period allowed under its deal came to end without a superior offering being made for the Canadian movie theatre company. THE CANADIAN PRESS/Aaron Vincent Elkaim
Republished February 03, 2020 - 8:00 AM
Original Publication Date February 03, 2020 - 5:36 AM
TORONTO - Cineworld Group's friendly deal to acquire Cineplex Inc. has cleared another hurdle, with a "go-shop" period ending without a superior offer being made for the Canadian movie theatre company.
Under Cineworld's agreement to acquire Cineplex, the company was allowed to solicit alternative bids to the $34 per share in cash offered by Cineworld.
The deal was valued at $2.8 billion including assumed debt when it was announced in December.
Cineplex says its advisers contacted 52 potential buyers and three were granted access to non-public information, but it did not receive a superior proposal.
Cineplex shareholders are scheduled to vote on the deal on Feb. 11.
Proxy advisory services Institutional Shareholder Services Inc. and Glass, Lewis & Co. have both recommended shareholders back the friendly deal which has the unanimous support of the Cineplex board.
If the deal is approved, Cineplex and its 165 movie theatres across Canada will become part of Cineworld's global chain, listed on the London Stock Exchange.
“We have worked hard for over 17 years to deliver value to our shareholders and with the go-shop period finalized, we are confident that the proposed agreement with Cineworld Group will do just that," said Ellis Jacob, Cineplex's chief executive officer, in a statement.
"We are pleased to be moving our business forward as part of one of the world’s largest cinema companies and ensuring that Cineplex is part of the next era of global entertainment.”
This report by The Canadian Press was first published Feb. 3, 2020.
Companies in this story: (TSX:CGX)
News from © The Canadian Press, 2020