The Deal
On December 15, 2019, United Kingdom-based Cineworld Group plc
("Cineworld"), the second largest cinema chain worldwide,
entered into an arrangement agreement (the "Arrangement
Agreement") with Cineplex Inc. ("Cineplex") whereby
Cineworld would acquire all of the issued and outstanding 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 December 13,
2019. The total transaction value was approximately $2.8 billion
including the assumption of net debt.
The transaction was to proceed by way of a statutory plan of
arrangement under the Ontario Business Corporations Act,
and was expected to close in the first half of this year.
