A proposed transaction between Player One Amusement Group’s parent company Cineplex and Cineworld Group would make the latter company one of the world’s largest cinema companies with more than 11,200 screens, according to a recent press release.
The agreement includes a “go-shop” period, which allows Cineplex to actively “solicit, evaluate and enter into negotiations with parties that make alternative acquisition proposals through Feb. 2, 2020.”
Insiders say that for Player One Amusement Group, it will be “business as usual with a possible upside being increased business opportunities within the movie theater industry.”
Noted Cineplex’s executive director of communications Sarah Van Lange: “Transactions like this take time and, if all goes as planned, the entire transaction process is expected to last until mid-2020. In the meantime, Cineplex operations across our ecosystem of business – including P1AG in Canada and the U.S. – will continue.”
The total transaction value is about $2.8 billion, including the assumption of net debt.