The Globe and Mail reports in its Tuesday, Feb. 4, edition that Cineworld Group's $2.2-billion deal to acquire Canada's largest movie theatre chain is one step closer to completion, after the end of a "go-shop" period that yielded no better offers for Cineplex.
The Globe's Susan Krashinsky Robertson writes that during the seven-week period that followed the announcement of the deal in December, Cineplex worked with financial adviser Bank of Nova Scotia to evaluate other offers. Scotiabank contacted 52 potential buyers, three of which signed confidentiality agreements. Cineplex announced on Monday that none of those potential buyers came forward with a superior offer.
Cineworld has offered $34 a share for Cineplex, which would give it the largest movie-theatre chain in North America. Cineworld also owns Regal Entertainment Group, which it acquired in 2018. Cineworld aims to build cinemas in new locations in Canada. As well, it plans to launch a subscription service that would charge a monthly fee for unlimited admission at Cineplex theatres, within about six months of the deal closing. The company's Regal chain has offered a similar deal in the United States since July.
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