We and our partners will store and/or access information on your device through the use of cookies and similar technologies, to display personalised ads and content, for ad and content measurement, audience insights and product development. Required fields are marked *, Copyright © 2020 CFO. Canadian exhibition chain Cineplex has announced it will commence legal proceedings against Cineworld and seek damages after the U.K.-based exhibitor pulled its $2.1 billion takeover deal.
Cineplex has developed a robust contingency plan for operating its business and improving its financial position on a go forward basis as one of Canada’s leading entertainment and media companies,” the company said. However, Cineplex responded that Cineworld had “no legal basis” to terminate the deal, noting that the arrangement agreement “explicitly excludes any ‘outbreaks of illness or other acts of God’ from the definition of material adverse effect” and all of Cineworld’s allegations arise the COVID-19 pandemic. All Rights Reserved.
Cineworld previously paid $3.6 billion for Regal Entertainment Group. In terminating the $34-per-share deal before a June 30 deadline, Cineworld, the owner of the Regal theater chain, said it had “become aware of certain breaches by Cineplex Inc. of the arrangement agreement relating to the acquisition” and that “a material adverse effect has occurred with respect to Cineplex.”. Cineplex Inc. is Canada’s largest chain of movie multiplexes, with more than 150 cinemas to its name under its Odeon, Famous Players, SilverCity, and Galaxy brands. “Cineplex has carefully reexamined all of its buildings and processes, so that when its theatres and entertainment venues reopen, it will have implemented an industry-leading program with end-to-end health and safety protocols.
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U.K-based Cineworld has called off a $2.1 billion deal to acquire Canada’s Cineplex, setting the stage for a legal battle between the two giant movie theater operators. The company said in December at the time that it planned to combine the operations of Cineplex and Regal to create the largest exhibitor in North America. Cineplex also said Monday that it plans to reopen six theaters in Alberta on June 26 and resume business for the rest of its locations in early July.
Your email address will not be published. Find out more about how we use your information in our Privacy Policy and Cookie Policy. It said Cineplex has separately alleged that Cineworld itself failed to comply with its obligations under the merger terms relating to pursuing the …
“Cineplex will file suit promptly to … hold Cineworld responsible for its breaches and failure to complete the transaction,” the company said. Cineworld back away from the Cineplex agreement on June 12, citing alleged breaches of the merger agreement and a “material adverse effect” without providing details. In a similar dispute, Texas chain Star Cinema Grill has accused CMX Cinemas, the eighth-largest U.S. chain, of using the pandemic as a pretext for backing out of its takeover of SCG. You can change your choices at any time by visiting Your Privacy Controls. Matthew Heller U.K-based Cineworld has called off a $2.1 billion deal to acquire Canada’s Cineplex, setting the stage for a legal battle between the two giant movie theater operators. Following completion, the new Cineworld would have had 11,204 screens globally and a combined 8,906 screens across the U.S. and Canada.
Cineworld announced in December it would acquire Cineplex, which dominates the Canadian theatrical market, in a move that would have created one of the world’s largest cinema companies with more than 11,200 screens. “Industry observers are uncertain how quickly cinemas can return to business as usual, since they will need to introduce physical distancing into the auditoriums, which means fewer tickets sold,” The Canadian Press reported. Cineworld said Cineplex breached the terms of their merger agreement and … Canada's Cineplex has launched a $202 million debt-securities issue to shore up its balance sheet after its $2.1 billion takeover by Regal owner Cineworld Group was called off. In April, Cineworld said it would suspend its dividend payments and that top executives had agreed to defer salary and bonus payments. Variety and the Flying V logos are trademarks of Variety Media, LLC. “In all markets where Cineplex is permitted by government and health authorities, it plans to reopen as many of its locations as it can on July 3, 2020 (or as soon thereafter as permitted by law),” Cineplex said in a statement on Monday. “Cineworld’s decision to abandon the transaction was a scenario that Cineplex had considered and planned for. Each of the companies indicated they would sue the other for breaching the agreement. Cineplex operates 165 cinemas and is the dominant movie theater chain in the Canada.
At Cineplex’s theatres specifically, it will also be launching reserved seating in all auditoriums across the country to ensure proper physical distancing between its guests.”.
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