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Cineworld to acquire Canada's Cineplex at $2.1 bn, expand across US

Cineworld has offered to buy Toronto-based Cineplex for C$34 ($25.56) per share, a premium of 42% to its close on Friday

Reuters 

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Shares in Cineworld were up about 1.4% in early trade.

Britain's Cineworld announced a $2.1 billion takeover of Canada's Cineplex Inc on Monday which would make it the largest cinema operator in North America.

Cineworld has offered to buy Toronto-based Cineplex for C$34 ($25.56) per share, a premium of 42% to its close on Friday.

Shares in Cineworld were up about 1.4% in early trade. The company said the $2.1 billion deal including debt would involve it seeking $2.3 billion in loans.

The deal comes nearly two years after Cineworld bought U.S.-based Regal cinemas for $3.6 billion. It will add 165 cinemas and 1,695 screens to its global network of 9,498 screens across 786 sites.

"Our immediate post-acquisition objectives will be to combine Cineplex with our U.S. business," Chairman Anthony Bloom said.

Cineworld said its largest shareholder Global City Theatres B.V. has agreed to back the deal. The company also said it will continue the refurbishment of the Regal chain in the United States.

Cineworld listed on the London Stock Exchange in 2007 and is part of UK's midcap index. Bank of America Securities, HSBC Bank and Goldman Sachs International acted as financial advisers.

First Published: Mon, December 16 2019. 13:54 IST
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