# Cineworld Group terminates proposed acquisition of Cineplex Inc.

- Link: https://www.directorstalkinterviews.com/cineworld-group-terminates-proposed-acquisition-of-cineplex-inc/412832794
- Published: 2020-06-15T07:27:40+01:00
- Author: Amilia Stone

**Cineworld Group plc** (LON:CINE) has become aware of certain breaches by Cineplex
Inc. of the arrangement agreement relating to the Acquisition. 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.

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