The Globe and Mail reports in its Wednesday, Feb. 12, edition that Cineplex has received approval from investors to be sold to Britain-based cinema conglomerate Cineworld Group PLC.
The Globe's Susan Krashinksy Robertson writes that the $2.2-billion deal was first announced in December, and was followed by a seven-week "go-shop" period that allowed Cineplex to evaluate other offers. Cineplex announced last week that no other potential buyers had come forward with a better bid.
At a meeting held on Tuesday, 99.92 per cent of Cineplex shares that were represented either in person or by proxy voted in favour of the deal, in which Cineworld has offered $34 a share. Cineworld also held a shareholder vote on Tuesday, and secured 99.59-per-cent support, with about 84.46 per cent of Cineworld's issued share capital represented in the vote. The acquisition of Cineplex makes Cineworld the largest movie-theatre chain in North America. In 2018, Cineworld bought Regal Entertainment Group. Cineworld's leaders believe its size will help it to compete in an entertainment environment that has become more fragmented.
The deal still requires regulatory approval from Innovation, Science and Economic Development Canada.
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