Canada’s largest movie theatre operator, Cineplex, has announced a strategic review that could result in the potential sale of the company, alongside the appointment of former Landmark Cinemas chief Bill Walker as its new Chief Executive Officer.
In a statement released on Wednesday, Cineplex said its board of directors has launched a Strategic Review aimed at identifying opportunities to enhance and maximize value for shareholders.
“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,” the company stated.
To support the review process, Cineplex has appointed Goldman Sachs and TD Securities as co-financial advisers.
The company said it remains confident in its long-term prospects but is evaluating various strategic options to ensure it delivers the best possible value to shareholders.
Cineplex operates nearly 170 theatres and more than 1,600 movie screens across Canada, employing over 10,000 people through its cinema and entertainment businesses, making it the country’s largest theatre chain.
This is not the first time the company has explored a sale. In 2019, Cineplex agreed to a C$2.8 billion acquisition by UK-based Cineworld Group PLC, but the deal ultimately collapsed before completion.
Former CEO Ellis Jacob will continue to support the company as a special adviser to the board during the review process.
Board Chair Phyllis Yaffe said Cineplex maintains a strong position in the entertainment industry with a valuable portfolio of assets, but noted that the company believes its current market valuation may not fully reflect its business strength and future growth potential.
Walker, who previously led Landmark Cinemas and oversaw its sale to Kinepolis in 2017, expressed support for the strategic review. He said his priority would remain focused on operational excellence, enhancing customer experiences and delivering strong returns for shareholders, regardless of the outcome of the review.
