Deal Creates Largest Movie Operator in North America

December 23, 2019 James Heinsman Company Spotlight

Opened in 2001. Initially owned by UGC. Later ugc uk was purchased by Cineworld.

Britain-based Cineworld is taking over Canada’s Cineplex Inc in a deal valued at $2.1 billion. The merger will create the largest cinema operator in North America.

Cineworld offered US$25.56 (C$34) per share for the Toronto-based Cineplex, that is 42% more than its closing price before the weekend.

Cineworld shares climbed by 1.4% in early trading. The company said the deal of $2.1 billion, which includes debt, will required the company looking for $2.3 billion in loans.

It has only been two years since Cineworld purchased the US-based company Regal Cinemas for $3.6 billion. The new deal will add another 165 theaters and 1,695 screens to its already huge network of screens totaling at the moment almost 9,500 at 786 locations around the world.

“Our immediate post-acquisition objectives will be to combine Cineplex with our U.S. business,” Chairman Anthony Bloom said.

Global City Theaters, the largest shareholder of Cineworld, says they will back the deal. Cineworld added that it will continue the improvements it is making to the Regal chain in the US.

Britain, Canada, Cineplex, Cineworld,

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