Cineplex has announced that it is exploring the possibility of a sale, with the appointment of Bill Walker, the former head of Landmark Cinemas, as its new CEO. The company’s board, while optimistic about its future, is actively considering various options to enhance shareholder value.
A strategic review has been initiated by the board to assess opportunities for maximizing value for all shareholders. This review may include exploring a potential sale of the company. Goldman Sachs and TD Securities have been appointed as co-financial advisers for this strategic review.
Cineplex, the largest cinema chain in Canada, operates over 1,600 movie screens in nearly 170 theaters nationwide, with a workforce of over 10,000 employees. In 2019, Cineplex was the subject of a $2.8-billion acquisition deal by Cineworld Group PLC, which ultimately fell through.
During the strategic review process, former CEO Ellis Jacob will act as a special adviser to the board. Phyllis Yaffe, chair of Cineplex’s board, emphasized the company’s strong market position and leading entertainment assets, noting that its current market valuation may not fully reflect its business strength and long-term potential.
Bill Walker, who previously led Landmark Cinemas and facilitated its sale to Kinepolis in 2017, expressed support for the strategic review. He emphasized his commitment to driving operational excellence, providing exceptional guest experiences, and delivering superior outcomes for shareholders, regardless of the review’s outcome.