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Cineplex is considering a potential sale, the company revealed in a statement announcing former Landmark Cinemas head Bill Walker as its new CEO, adding that while the board is confident in the company’s future prospects, it is evaluating all avenues.
“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.
Cineplex was last up for sale in 2019, but the $2.8 billion takeover by Cineworld was cancelled. (Carlos Osorio/Reuters)
Former CEO Ellis Jacob will serve as a special adviser to the board during the strategic review.
Phyllis Yaffe, chair of Cineplex’s board, said that Cineplex has a “strong market position [and] portfolio of leading entertainment assets.”
“However, we believe the Company’s current market valuation may not fully reflect the strength of its business and long-term prospects,” Yaffe said.
Walker previously led Landmark Cinemas, Canada’s second-largest theatre exhibitor, and oversaw its sale to Kinepolis in 2017.
He said in the statement that he supported the strategic review, and that “regardless of the outcome,” his focus would be on “driving operational excellence, delivering exceptional guest experiences and superior outcomes for shareholders.”