Cineworld pulls out of Cineplex acquisition
Cineworld Group of Brentford, UK has announced the terminatation of its agreement to acquire Toronto-based theatre chain Cineplex Entertainment. Under the terms of the deal, announced in December 2019, Cineworld would have acquired all outstanding common shares of Cineplex for approximately $2.8 billion plus the assumption of debt. In a statement, Cineplex asserted that Cineworld has no legal basis to terminate the agreement and has breached its contractual obligations. However, the transaction will not proceed. Cineplex has announced its intention to begin legal proceedings against Cineworld. Cineplex operates 165 movie theatres in Canada. Cineworld operates 9,498 screens at 786 theatres in the US, UK, Ireland, Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel.