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Cineworld Tumbles After $1 Billion Damages Ruling Over Failed Takeover -Breaking

by Mike Robinson

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© Reuters

Catherine Reynolds

Investing.com – Shares of Cineworld (LON), a U.K. cinema operator, plunged as high as 40% after it was ruled by a Canadian court that the company had to pay $1 billion damages following its withdrawal from Cineplex’s takeover.

Cineplex (TSX) claims that Cineworld broke its contract after it pulled out from the acquisition of Cineworld in June 2020, when the Covid pandemic affected theaters and cinemas. Cineworld would become the largest U.S. movie theatre operator thanks to the deal.

The court found in Cineplex’s favour and dismissed Cineworld’s counter claim.

Cineworld in the U.S. owned the Regal movie theatre chain. The company said it would appeal and did not expect damages to be paid while appeal proceedings were continuing.

The losses were reduced to 25% later on by the shares, which was at 4:10 AM ET (0910 GMT).

 

 

 

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