page_title: Cineplex Entertainment
section_title: 2019-present: Attempted acquisition by Cineworld
hierarchical_section_title: Cineplex Entertainment / History / 2019-present: Attempted acquisition by Cineworld
caption_attribution_description: English: Cineplex Cinemas Markham and VIP - Address: 179 Enterprise Blvd #169, Markham, ON L6G 0E7
context_page_description: Cineplex Inc., formerly known as Cineplex Galaxy Income Fund and Galaxy Entertainment Inc. is a Canadian entertainment company headquartered in Toronto, Ontario. Through its operating subsidiary Cineplex Entertainment LP, Cineplex operates 165 theatres across Canada. The company operates theatres under numerous brands, including Cineplex Cinemas, Cineplex Odeon, SilverCity, Galaxy Cinemas, Cinema City, Famous Players, Scotiabank Theatres and Cineplex VIP Cinemas.
  Cineplex claims the heritage of Famous Players Film Corporation when it was founded in 1912, followed by the establishment of Odeon Theatres of Canada in 1941. Odeon merged with the Canadian Theatres chain in 1978, becoming Canadian Odeon Theatres.. Cineplex Corporation began operating in 1979. Odeon merged with Cineplex in 1984 to form Cineplex Odeon Corporation, before being acquired by Loews Theatres in 1998 becoming Loews Cineplex Entertainment. The present enterprise dates to 1999 when Ellis Jacob and a number of Cineplex Odeon executives formed Galaxy Entertainment Inc., which merged the Canadian unit of Loews Cineplex by Onex Corporation in 2002 following its bankruptcy in 2001.
context_section_description: On December 16, 2019, Cineplex announced a definitive agreement to be acquired by the British cinema operator Cineworld Group, the second-largest film exhibitor worldwide, pending shareholder and regulatory approval. Cineworld would be paying $34 per-share—a 42% premium over Cineplex's share price prior to the announcement, valuing the company at CDN$2.8 billion. Cineworld planned to pay US$1.65 billion, and to fund the remainder by taking on debt. 
  Combined with its ownership of the 564-location Regal Cinemas chain in the United States (which it had acquired the previous year), the sale would have made Cineworld the largest cinema chain in North America. Cineworld stated that it planned to integrate Cineplex's operations with those of Regal, while maintaining Cineplex's banners for its Canadian operations. The company also stated that it planned to reach $120 million in cost efficiencies and revenue synergies (including the adoption of a subscription service scheme similar to Regal and Cineworld) by the end of fiscal year 2020. 
  The sale was approved by Cineplex shareholders in February 2020. Activist shareholder Bluebell Capital Partners called for the Canadian government to block the sale due to the COVID-19 pandemic, which in turn led to all Cineplex properties temporarily closing indefinitely on March 16. In May, Cineplex stated that Cineworld planned to complete the sale (pending federal approval under the Investment Canada Act) by June 2020, provided that it met the terms of the merger (including its debt not exceeding $725 million).
  On June 12, 2020, Cineworld abandoned the purchase, alleging that Cineplex had engaged in conduct that breached unspecified terms of the sale, and that the company had experienced a "material adverse effect" of an unspecified nature. Cineplex denied the claims and made counter-allegations. The agreement with Cineworld included a condition that the latter would pay a penalty in case it decided to cancel the deal. In July, Cineplex started legal action against Cineworld claiming financial damages and Cineworld counter-sued.
caption: Cineplex theatre in Markham
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