Cineplex to be bought by U.K.-based Cineworld in $2.8B deal
Cineworld will also take on the debt owed by the Toronto-based company, which has 165 movie theatres across Canada.
“We believe this transaction today is both financially compelling and in our shareholders best interest,” Cineplex CEO Ellis Jacob said in a statement.
The companies expect the transaction to close in the first half of 2020.
However, Cineplex has seven weeks to solicit and negotiate with other potential buyers who may be willing to pay more for the company.
Cineworld would be receive a termination fee under certain circumstances including if Cineplex finds another buyer with a superior offer.
Cineplex has diversified in recent years into a variety of entertainment-related businesses including advertising, events programming and the Rec Room _ a chain of locations serving food, drink and amusements.
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