Dec 15, 2021
Cineworld shares plunge after losing ruling over aborted Cineplex takeover
Cineworld shares plunged almost 40 per cent in early trading on Wednesday after a Canadian court ruled that the world's second-biggest cinema chain owes damages of C$1.2bn over its aborted takeover of rival Cineplex. London-listed Cineworld said that the Ontario Superior Court of Justice had ruled in favour of Canada's Cineplex, which alleged the UK group had breached its obligations by pulling out of a takeover agreed in late 2019, weeks before the pandemic struck. The two companies have been wrangling ever since, with Cineworld launched a counterclaim against its former takeover target. As well as C$1.23bn in what Cineworld called lost synergies, the company said the Ontario court also awarded Cineplex C$5.5m in lost transaction costs. Shares in Cineworld tumbled as much as 36 per cent to 29p in early trading in London.
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