Update on proposed acquisition of Cineplex Inc.

RNS Number : 8826P

Cineworld Group plc

12 June 2020

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

12 June 2020

Cineworld Group plc ("Cineworld")

Update on proposed acquisition of Cineplex Inc. (the "Acquisition")

Cineworld has become aware of certain breaches by Cineplex Inc. ("Cineplex") of the arrangement agreement relating to the Acquisition (the "Arrangement Agreement"). In addition, a material adverse effect has occurred with respect to Cineplex. As a consequence of these matters and Cineplex's unwillingness to cure the breaches, Cineworld has notified Cineplex that it has terminated the Arrangement Agreement with immediate effect. The Acquisition will therefore not proceed.

Cineplex claims that it has not breached the Arrangement Agreement and that a material adverse effect has not occurred.  Cineplex has also separately alleged that Cineworld has failed to comply with its obligations under the Arrangement Agreement relating to pursuing the approval of the Acquisition under the Investment Canada Act.  Cineworld has complied with all of its obligations under the Arrangement Agreement and it is entitled to terminate the Arrangement Agreement.  It will therefore vigorously defend any allegation to the contrary.  Cineworld has also reserved its right to seek damages from Cineplex in respect of Cineplex's breaches of the Arrangement Agreement, which, in addition to the occurrence of the material adverse effect, gave rise to the termination.

Contacts:

Israel Greidinger Nisan Cohen Manuela Van Dessel	[phone] [e-mail]
James Leviton Andy Parnis Rob Allen	[phone] [e-mail]

The person responsible for arranging the release of this announcement is Fiona Smith, Company Secretary.

This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts and involve predictions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend on circumstances, that will occur in the future. Forward-looking statements may and often do differ materially from actual results expressed or implied in these forward looking statements. Any forward-looking statements reflect Cineworld's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the business, results of operations, financial position, liquidity, prospects, growth or strategies of the Group. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. Save as required by law or regulation, Cineworld disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement. Nothing in this announcement is intended to be, or should be construed as, a profit forecast.

 

END

 

 

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