People exit a Cineplex theatre in Toronto on Dec. 16, 2019.Christopher Katsarov/The Globe and Mail
Cineplex Inc. says two influential proxy advisory services have recommended shareholders support a takeover of the company by U.K.-based Cineworld Group PLC.
The movie theatre chain says Institutional Shareholder Services Inc. and Glass Lewis & Co. have both recommended shareholders back the friendly deal that will see Cineworld pay $34 per Cineplex share in cash.
Cineplex shareholders are set to vote on the deal at a meeting in Toronto on Feb. 11.
The board of directors of Cineplex has unanimously recommended that Cineplex shareholders vote in favour of the agreement.
If the deal is approved, Cineplex and its 165 movie theatres across Canada will become part of Cineworld’s global chain, listed on the London Stock Exchange.
The deal is expected to be completed in the first half of 2020.
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