The Globe and Mail reports in its Friday, Jan. 31, edition that Cineplex ($33.84) says two influential proxy advisory services have recommended shareholders support a takeover of the company by U.K.-based Cineworld Group.
A Canadian Press dispatch to The Globe reports that the movie theatre chain says Institutional Shareholder Services and Glass Lewis & Co. have both recommended shareholders back the friendly deal that will see Cineworld pay $34 per Cineplex share in cash.
Cineplex shareholders are set to vote on the deal at a meeting in Toronto on Feb. 11.
The board of directors of Cineplex has unanimously recommended that Cineplex shareholders vote in favour of the agreement.
If the deal is approved, Cineplex and its 165 movie theatres across Canada will become part of Cineworld's global chain, listed on the London Stock Exchange.
The deal is expected to be completed in the first half of 2020. The Globe reported on March 14, 2019, that Raymond James analyst Kenric Tyghe continued to rate Cineplex "outperform," with a $31 share target. Cineplex shares could then be had for $24.56.
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