Cineplex: Selling Itself For $34? It Is What It Is
About: Cineplex Inc. (CPXGF), Includes: CNNWF, CNWGY
by: Sherif Samy
Summary
Cineplex has a history of taking risks and diversifying its business.
It is likely selling itself to gain more clout in its negotiations with Hollywood studios.
An offer price of $34 a share seems a bit short compared to what it was trading at more than 2 years ago, but it is fair.
In mid-December, Cineplex (OTCPK:CPXGF) announced a friendly takeover deal that will see Cineworld Group (OTCPK:CNNWF or OTC:CNWGY ) purchase Cineplex for $34 (in CDN) a share. This represented a 42% premium at
