It was a deal that was going to set the future for a company operating in Burnaby’s biggest mall.
And now it has collapsed after months of work.
Cineworld PLC says it has terminated its $2.8-billion takeover of Canadian movie exhibitor Cineplex Inc. after "certain breaches" of the acquisition deal.
Cineplex operates Burnaby’s only movie theatre at Metropolis at Metrotown, and is also building a new five-screen VIP theatre that is set to go into the Amazing Brentwood. Cineplex is also building one of its national Rec Room entertainment complexes at the Amazing Brentwood.
The U.K-based theatre chain says it is backing away from the deal after becoming aware of a material adverse effect and breaches to the agreement by Toronto-based Cineplex.
Cineworld did not specify what the breaches or effect was in a statement it released, but says Cineplex denies they have occurred.
Cineworld says Cineplex has also separately alleged that Cineworld failed to comply with its obligations under the acquisition agreement.
The spat comes after Cineworld struck a takeover deal with Cineplex, announced late last year, which valued the Canadian company at $34 per share, a 42 per cent premium on the chain's stock price at the time.
Cineworld operated 9,498 screens across 786 sites across the globe, but its acquisition of Cineplex would have added 165 Canadian theatres and 1,695 screens to that count.
- With files from The Canadian Press
