Cineplex has disclosed a contemplation of a potential sale as it introduced Bill Walker, the former head of Landmark Cinemas, as its new CEO. The company expressed confidence in its future but stated that the board is exploring all options to enhance shareholder value through a Strategic Review process.
The board has engaged Goldman Sachs and TD Securities as co-financial advisers for the strategic review. Cineplex, known as the largest cinema chain in Canada, operates over 1,600 movie screens in nearly 170 theaters nationwide, employing more than 10,000 individuals in its entertainment venues.
In 2019, Cineplex faced a potential sale when it agreed to a $2.8 billion acquisition by Cineworld Group PLC, a deal that eventually fell through. Ellis Jacob, the former CEO, will act as a special adviser to the board during the ongoing strategic review period.
Phyllis Yaffe, the chair of Cineplex’s board, emphasized the company’s strong market position and leading entertainment assets, citing a belief that the current market valuation might not adequately represent the business’s strength and long-term potential.
Bill Walker, having previously led Landmark Cinemas and overseen its sale to Kinepolis in 2017, expressed support for the strategic review. He emphasized a commitment to operational excellence, exceptional guest experiences, and achieving superior outcomes for shareholders regardless of the review’s outcome.