The Globe and Mail reports in its Saturday, June 13, edition that Cineworld PLC says it has terminated its $2.8-billion takeover of Canadian movie exhibitor Cineplex after "certain breaches" of the acquisition deal. A Canadian Press dispatch to The Globe reports that the Britain-based theatre chain says it is backing away from the deal after becoming aware of a material adverse effect and breaches to the agreement by Toronto-based Cineplex.
Cineworld did not specify what the breaches or effect were in a statement it released, but says Cineplex denies they have occurred.
Cineworld says Cineplex has also separately alleged that Cineworld failed to comply with its obligations under the acquisition agreement.
The spat comes after Cineworld struck a takeover deal with Cineplex, announced late last year, which valued the Canadian company at $34 a share, a 42-per-cent premium on the chain's stock price at the time.
Cineworld operated 9,498 screens across 786 sites across the globe, but its acquisition of Cineplex would have added 165 Canadian theatres and 1,695 screens to that count. Cineplex shares closed Friday in Toronto at $13.82, down 15 cents.
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