|Bid||7.89 x 0|
|Ask||7.90 x 0|
|Day's Range||7.65 - 8.01|
|52 Week Range||6.30 - 34.39|
|Beta (5Y Monthly)||1.94|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Jan 30, 2020|
|1y Target Est||N/A|
Cineworld, the world’s second largest cinema chain, said on Monday it denied claims it breached an agreement with Cineplex and said it would “vigorously defend” itself against the firm.
Cineplex said last week it was suing Cineworld for damages, including about C$2.18 billion that Cineworld would have paid on closing of the deal. Cineworld said on Monday it did not breach any obligations or duties and said if Cineplex's claim was successful, it would be limited to its costs and expenses incurred as part of the deal. "Cineworld is entitled to recover from Cineplex all damages and losses that it has suffered as a result of Cineplex's breaches and the acquisition not proceeding," Cineworld said in a statement.
Lloyds Banking Group boss António Horta-Osório is to step down in 2021 after ten years stewarding the high street bank through the aftermath of the financial crisis and its return to private ownership after 2008’s bailout. Lloyds on Monday named its new chairman to replace Lord Blackwell, who announced his plans to retire from the bank last year. Robin Budenberg, a former UBS banker who went on to become chief executive and then chairman of the body that managed the government stakes in high street banks including Lloyds after the crisis-era bailouts, will take over as chairman early next year.
The Cineplex claim seeks damages, including about $2.18 billion that Cineworld would have paid upon the closing of the deal, and the failure of Cineworld to repay the company's about $664 million in debt and transaction expenses. Cineplex claims that Cineworld breached its obligations and duty of "good faith and honesty" in contractual performance. "The contractual agreements between the parties expressly exclude outbreaks of illness, such as the COVID-19 pandemic, as a circumstance entitling Cineworld to terminate the arrangement," Cineplex said in a statement.
(Bloomberg) -- Cineplex Inc. has begun legal proceedings against Cineworld Group Plc after the latter backed out of a deal that would have created the biggest operator of movie theaters in North America.Toronto-based Cineplex is seeking damages including the C$2.18 billion ($1.61 billion) Cineworld would have paid to buy the company, minus the value of Cineplex securities retained by its holders.It also wants to be compensated for other losses, including Cineworld’s failure to repay or refinance Cineplex’s C$664 million in debt and transaction expenses.Last month, Cineworld scrapped the acquisition saying Cineplex breached the terms of the merger agreement and was unwilling to correct the situation. It pointed to a deterioration of Cineplex’s business amid the coronavirus pandemic.But Cineplex dismissed that argument, saying London-based Cineworld is the one that breached its obligations.“The contractual agreements between the parties expressly exclude outbreaks of illness, such as the Covid-19 pandemic, as a circumstance entitling Cineworld to terminate the arrangement,” Cineplex said in a statement Friday. “Cineworld intentionally chose to breach its obligations, including its obligation to seek timely regulatory approval for the arrangement under the Investment Canada Act.”The coronavirus health crisis shuttered movie theaters across the world including Cineplex’s operations. Earlier this week, it reported a loss of C$178 million for the first quarter. The company acknowledged that the business will take a long time to recover from the pandemic.Cineplex struck an agreement with lenders to relax financial covenants as it deals with an uncertain future after the failed takeover. Lenders will require it to raise C$250 million by the end of August, some of which must be used to repay existing debt.The company shut all of its venues on March 16 and most remain closed, though it plans to open some outlets in six provinces starting Friday.Cineplex shares have slumped 75% this year, making it the worst-performing stock on the S&P/TSX Composite Index.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Canada's main stock index gave back a small part of this week's rally on Friday, as a record surge in COVID-19 cases in the United States raised fears of another round of lockdowns. * The United States reported more than 55,000 new COVID-19 cases on Thursday, a new daily global record for the pandemic. * The Toronto Stock Exchange's S&P/TSX composite index closed down 0.2% at 15,596.75.
(Bloomberg) -- Cineplex Inc. tumbled after the company said it took a C$173 million charge as the Covid-19 pandemic shuttered movie theaters across the world.Shares of the Toronto-based company plunged as much as 23% and finished the day down 19% to close at C$8.05, the lowest closing price since its 2003 initial public offering. On Monday evening, the company reported a loss of C$178 million for the quarter ended March 31. The loss included a writedown on property and other assets and the company acknowledged that the business will take a long time to recover from the pandemic.“While it is impossible to predict how long this crisis will last and how significant the impact will be on our business, we know guests miss the magic of the big screen and sound,” Chief Executive Officer Ellis Jacob said in the quarterly statement on Monday.Cineplex also announced it had struck an agreement with lenders to relax financial covenants as it deals with an uncertain future after a failed takeover.Canada’s dominant chain of movie theaters said lenders will require it to raise C$250 million ($183 million) by the end of August. Some of the new money must be used to repay existing debt. The company shut all of its venues on March 16 and most remain closed, though it plans to open some outlets in six provinces starting on Friday.Jacob said he remains optimistic about the firm’s business model.“We had hiccups in the past and we worked together to make sure we come out much stronger and better as an organization,” Jacob said on BNN Bloomberg television. “The only risk is at the end of the day we don’t know how long this pandemic will last.”Failed TakeoverLondon-based Cineworld Group Plc, the world’s second-largest cinema group, agreed last year to take over Cineplex for C$2.15 billion but scrapped the deal on June 12, alleging the Canadian company breached the terms of the agreement. Cineplex denied the claims. In a call with analysts Wednesday morning, Jacob said the firm will file suit against Cineworld “within the next week or so.”The Cineworld takeover offer was for C$34 a share. Cineplex dropped as low as C$7.63 on Tuesday morning. Both companies have seen their revenues crushed by the pandemic, with movie theaters across the world forced to close temporarily to slow the spread of the virus. Cineplex’s market value has plunged to about C$513 million, down from C$2.1 billion in February. Since the beginning of the outbreak, the company laid off staff and suspended dividends.“As a result of Cineworld’s repudiation of the arrangement agreement, we focused on working with our financial partners to ensure that our long-term liquidity needs are met,” Jacob said in the statement.As individual Canadian provinces have slowly begun to lift restrictions, Cineplex is gradually following. Six locations in Alberta have resumed operations, complete with reserved seating and other measures in place to ensure physical distancing. There are plans to also reopen theaters in British Columbia, Saskatchewan, Quebec, New Brunswick, Nova Scotia and Newfoundland and Labrador.However, Jacob added on BNN Bloomberg that the delayed release of films such as Christopher Nolan’s Tenet and Disney’s Mulan have also impacted the reopening schedule.(Updates share price move second paragraph. Previous versions of this story were corrected to show Cineplex had struck an agreement with lenders to relax financial covenants.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Toronto Stock Exchange's S&P/TSX composite index closed up 0.8% at 15,515.22. Since the end of March, the TSX has climbed nearly 16% to notch its biggest quarterly advance since the second quarter of 2009.
The implementation of the rights plan will prevent investors from acquiring 20% or more of the company's outstanding common shares without complying with certain provisions of the plan, Cineplex said. Cineworld scrapped the deal last week citing what it termed Cineplex's breaches in the merger agreement between the cinema operators. The rights plan has not been adopted in response to any specific takeover bid or other proposal to acquire control of Cineplex, it added.
British cinema operator Cineworld Group Plc said on Tuesday that some of its theatres would reopen in the last week of June and expected all of them to reopen by July with safety measures, including enhanced sanitation procedures across all sites. The company, which abandoned its $1.65 billion deal to buy Canada's Cineplex last week, said it had updated its booking system to ensure social distancing in its auditoriums, along with adapting movie schedules to manage queues and avoid the build-up of crowds in lobbies. Cineworld, which had shut down its theatres due to coronavirus-led restrictions, expects to reopen in the United States and the UK on July 10.
- Germany plans to invest 300 million euros ($340.02 million) and acquire a 23% stake in the private biotech group CureVac, a key player in the race to develop COVID-19 vaccine. - British Prime Minister Boris Johnson has set an end-of-July deadline for sealing a UK-EU trade deal and has agreed alongwith EU institutional leaders to inject "new momentum" into the negotiations. - Britain's Cineworld Group Plc is facing legal action launched against it by its Canadian rival Cineplex Inc after the former pulled out of a $2.3 billion deal that was due to complete this month.
"As a consequence of ... Cineplex's unwillingness to cure the breaches, Cineworld has notified Cineplex that it has terminated the Arrangement Agreement with immediate effect," Cineworld said in a statement. Cineworld did not specify what the breaches were, adding that a "material adverse effect" occurred with the Canadian company. Cineplex issued a separate statement denying the claims of Cineworld and saying that Cineworld's allegations stem from the impact of the coronavirus outbreak.
(Bloomberg) -- Britain’s Cineworld Group Plc backed out of a deal to acquire Canada’s Cineplex Inc. for C$2.15 billion ($1.6 billion), a transaction that would have made it the biggest operator of movie theaters in North America.The company said in a statement Friday that Cineplex breached the terms of their merger agreement and was unwilling to correct the situation. Cineworld pointed to a deterioration in Cineplex’s business. But Cineplex said that Cineworld had no legal basis to terminate their accord and “breached its contractual obligations.” The Canadian company said it would start legal proceedings and seek damages against its onetime suitor.In December, the U.K. company had agreed to pay C$34 a share in cash for Cineplex, a 42% premium to its price around that time. The deal would have been funded by $2.3 billion of debt.With attendance declining, the movie-theater industry has been consolidating to cut costs and pay for upgrades to cinemas. But the coronavirus shut down theaters across the U.S., Canada and Europe in March, and the industry has been trying to plot a comeback.Creditor ReliefInvestors who agreed to provide Cineworld with a $1.9 billion loan in February -- part of the deal financing -- may get a reprieve. The loan nearly halved in value in March amid the outbreak and was most recently quoted just below 70 cents on the dollar, according to data compiled by Bloomberg.The loan, as well as any trades in the debt, are expected to be unwound because the company never drew the funds, according to people with knowledge of the matter who asked not to be named because they are not authorized to speak publicly.A representative for Cineworld declined to comment beyond the company’s press release.London-based Cineworld previously spent $3.6 billion buying American operator Regal Entertainment Group in 2018.The Cineplex deal would have to let it vault past AMC Entertainment Holdings Inc. to become the biggest cinema operator in the region. China’s Dalian Wanda Group Co., which controls AMC, has been scaling back its entertainment assets globally as billionaire Wang Jianlin shores up finances.At issue is whether a pandemic-related slump in Cineplex’s business can be used to end the deal, Cineplex said.“Cineworld alleges that a material adverse effect has occurred with respect to Cineplex,” it said. But the agreement “explicitly excludes any ‘outbreaks of illness or other acts of God’ from the definition of material adverse effect and all of Cineworld’s allegations stem from an outbreak of illness.”(Updates with details about debt financing starting in fifth paragraph and Cineplex response from third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Britain's Cineworld Group Plc said on Friday it abandoned its deal to buy Canada's Cineplex Inc, citing breaches in the merger agreement between the cinema operators. "As a consequence of... Cineplex's unwillingness to cure the breaches, Cineworld has notified Cineplex that it has terminated the Arrangement Agreement with immediate effect," Cineworld said in a statement.
Canada's main stock index fell on Friday on U.S. President Donald Trump's threat to slap new tariffs on China over the coronavirus crisis, and as data showed Canadian manufacturing activity slumped to a record low in April. Trump said late on Thursday his trade deal with China was now of secondary importance to the pandemic, as his administration crafted retaliatory measures over the outbreak. * At 09:39 a.m. ET (13:39 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 181.94 points, or 1.23%, at 14,598.8.
Landlords across Canada should brace for rent strikes in May unless the government steps in with rental subsidies for occupants as the outbreak of new coronavirus decimates wages, industry groups and tenants said on Monday. A rent strike is gathering steam in Ontario, the country's most populous province. Keep Your Rent Toronto's private Facebook group accrued over 5,000 members in less than two weeks, and its organizers said their platform has been used to send over 100,000 letters to landlords in Toronto, stating that they would not be paying rent.
Canada's main stock index fell on Thursday, as investors worried over the economic impact of the coronavirus following an increase in the U.S. death toll, while gold miners benefited from safe-haven demand. * At 9:49 a.m. ET (1449 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 206.48 points, or 1.23%, at 16,573.05. * Canada's energy sector dropped 2.2% and the financials and industrials sectors fell 1.7% and 1.6%, respectively.
VIP Cinema Holdings, the largest maker of luxury reclining seats for U.S. movie theaters, on Tuesday filed for bankruptcy, citing a glut of seating as box office receipts fell, screen growth slowed, and older seats lasted longer than expected. In filings with the U.S. bankruptcy court in Delaware, VIP said its Chapter 11 reorganization would hand control to its lenders and private equity firm H.I.G. Capital, which would take a 51% equity stake, and eliminate $178 million of long-term debt. It said it has a 70% share of the U.S. market for luxury movie theater seating.
Cineplex (TSE:CGX) shares have had a really impressive month, gaining 40%, after some slippage. The full year gain of...
Cineworld said on Monday the deal, which values Cineplex at $2.1 billion including debt, would involve it seeking $2.3 billion in loans, sending shares of the FTSE-250 member down as much as 9% and erasing early gains. While cinemas rely on big movie releases to generate gains, streaming services like Netflix and Amazon's Prime Video are invading that space with direct to stream movies or releasing movies within a few weeks of their cinema debut. "It (Cineworld) is effectively betting that Hollywood studios will consistently release films we all want to see, and that a recession won't hurt demand for a trip to the flicks," AJ Bell investment director Russ Mould said.
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