Cineplex may be going up for sale, company says in announcement of new CEO
Cineplex has announced a strategic review to explore options including a potential company sale following the appointment of a new CEO. The Canadian cinema chain is working with financial advisers to maximize shareholder value after a previous 2019 acquisition attempt failed.
Why it matters
As Canada's largest cinema chain, a potential sale could significantly reshape the North American entertainment exhibition landscape.
"The Board has initiated a Strategic Review to evaluate opportunities to enhance and maximize value for all shareholders," a memo on Walker's appointment said Wednesday .
"As part of the Strategic Review, the Board will consider a range of alternatives, including, but not limited to, a potential sale of the Company."
Goldman Sachs and TD Securities have been engaged as co-financial advisers for the strategic review, the company says.
According to Cineplex, the company is the largest cinema chain in Canada, operating more than 1,600 movie screens across nearly 170 movie theatres nationwide, and employing more than 10,000 people in its theatres and entertainment venues.
The last time Cineplex was up for sale was in 2019, when the company agreed to a $2.8-billion buyout by U.K.-based Cineworld Group PLC. However, the deal fell through .
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