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Cineplex Pacts For Acquisition By Cineworld Group To Augment Scale

TORONTO, ON, Canada -- Cineplex Inc. has announced that it has entered into a definitive agreement to be acquired by Cineworld Group plc (London, England). The transaction will create an international powerhouse with more than 11,200 screens, which will provide Cineplex with substantial scale and all the benefits of a global enterprise. Under terms of the agreement, Cineworld Group will acquire all of the issued and outstanding common shares of Cineplex for $34 per share in cash, representing a premium ...

December 16, 2019

TORONTO, ON, Canada -- Cineplex Inc. has announced that it has entered into a definitive agreement to be acquired by Cineworld Group plc (London, England).

The transaction will create an international powerhouse with more than 11,200 screens, which will provide Cineplex with substantial scale and all the benefits of a global enterprise.

Under terms of the agreement, Cineworld Group will acquire all of the issued and outstanding common shares of Cineplex for $34 per share in cash, representing a premium of 42% to the closing price on the Toronto Stock Exchange (TSX) and a premium of 39% to the volume-weighted average share price on the TSX for the 30 days ending Dec. 13.

The total transaction value is approximately $2.8 billion, including the assumption of net debt, and 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 is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2020.

Cineplex is a top-tier Canadian brand that operates in the film entertainment and content, amusement and leisure, and media sectors. Cineplex welcomes more than 70 million guests annually through its circuit of theatres and location-based entertainment venues across the country. Cineplex also operates successful businesses in digital commerce (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 eSports platform for competitive gamers (WorldGaming Network).

Additionally, Cineplex operates location-based entertainment complexes specially designed for teens and families (Playdium) as well as Canada's favorite destination for "Eats & Entertainment" (The Rec Room), and is planning to open new sports and entertainment venues across Canada (Topgolf). Cineplex is a joint venture partner in SCENE, Canada's largest entertainment loyalty program. Cineplex employs approximately 13,000 people in its offices across Canada and the United States.

Cineworld Group plc was founded in 1995, and listed its shares on the London Stock Exchange in May 2007. The company has grown through expansion and by acquisition to become the second-largest cinema chain worldwide, holding the No. 1 or No. 2 position by number of screens in each of its regions. As of Dec. 1, Cineworld operated 9,498 screens across 786 sites in the U.S., U.K., Ireland, Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel.

"Cineworld Group shares our passion for entertainment and mirrors our commitment to delivering exceptional guest experiences through state-of-the-art technology," said Cineplex president and chief executive Ellis Jacob. "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."

Cineplex's long legacy of supporting the Canadian entertainment industry and its partners in the arts, including support for film festivals, programs and industry events across Canada, will continue, the company said. 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.