Cineplex seen getting offers for half the price of 2019 bid

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Photo by Cole Burston/Bloomberg via Getty ImagesCineplex Inc., Canada’s largest movie theatre chain, is likely to receive offers worth half of what it could have fetched before the COVID-19 pandemic if it decides to sell, according to an analyst.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Toronto-based firm announced this week it has hired Goldman Sachs and TD Securities to help it conduct a strategic review that may lead to a sale. Longtime chief executive Ellis Jacob was replaced by Bill Walker, but Jacob will be involved as a strategic adviser to the board. Jacob had been reaching out to peers such as Cineworld Group and Cinemark Holdings Inc. to gauge their interest in taking over the business, Bloomberg News reported in April.This advertisement has not loaded yet, but your article continues below.In 2019, Cineplex agreed to be acquired for $34 a share in cash by Cineworld, but that deal fell apart because of severe losses during the pandemic.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try again“The likely starting point for any initial bid(s) is possibly at a level or within a range that is half of the price finally offered by Cineworld,” National Bank of Canada analyst Adam Shine said in a note to clients. That amount may move higher if “bid tension ensues,” and could involve “both cash and stock this time around.”Cineplex’s stock closed at $12.90 Thursday in Toronto, up more than 20 per cent for the year to date and giving the company a market capitalization of $813 million. The shares fell about one per cent in early trading Friday.“As a reality check, the company and its peers were in survival mode 2020-2022 and then coping with the after-effects of the Hollywood strikes 2023-2024,” Shine said. “While 2025 still didn’t have a full slate of film releases, 2026 finally delivered more optimal volume.”We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.