Canada's largest movie theatre chain nearing sale to UK-based company
Cineworld Group's friendly deal to acquire Cineplex Inc. has cleared another hurdle, with a "go-shop" period ending without a superior offer being made for the Canadian movie theatre company.
Under Cineworld's agreement to acquire Cineplex, the company was allowed to solicit alternative bids to the $34 per share in cash offered by Cineworld.
The deal was valued at $2.8 billion including assumed debt when it was announced in December.
Cineplex says its advisers contacted 52 potential buyers and three were granted access to non-public information, but it did not receive a superior proposal.
Cineplex shareholders are scheduled to vote on the deal on Feb. 11.
Proxy advisory services Institutional Shareholder Services Inc. and Glass, Lewis & Co. have both recommended shareholders back the friendly deal which has the unanimous support of the Cineplex board.
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.
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