Cineplex Seen Getting Offers for Half the Price of 2019 Bid

Cineplex Inc., Canada’s largest movie theater chain, is likely to receive offers worth half of what it could have fetched before the Covid-19 pandemic if it decides to sell, according to an analyst.

The Toronto-based firm announced this week it has hired Goldman Sachs and TD Securities to help it conduct a strategic review that may lead to a sale. Longtime Chief Executive Officer Ellis Jacob was replaced by Bill Walker, but Jacob will be involved as a strategic adviser to the board. Jacob had been reaching out to peers such as Cineworld Group and Cinemark Holdings Inc. to gauge their interest in taking over the business, Bloomberg News reported in April.

In 2019, Cineplex agreed to be acquired for C$34 a share in cash by Cineworld, but that deal fell apart because of severe losses during the pandemic.

“The likely starting point for any initial bid(s) is possibly at a level or within a range that is half of the price finally offered by Cineworld,” National Bank of Canada analyst Adam Shine said in a note to clients. That amount may move higher if “bid tension ensues,” and could involve “both cash and stock this time around.”

Cineplex’s stock closed at C$12.90 Thursday in Toronto, up more than 20% for the year to date and giving the company a market capitalization of C$813 million ($575 million). The shares fell about 1% in early trading Friday.

“As a reality check, the company and its peers were in survival mode 2020-2022 and then coping with the after-effects of the Hollywood strikes 2023-2024,” Shine said. “While 2025 still didn’t have a full slate of film releases, 2026 finally delivered more optimal volume.”

Read More: Canada Movie Chain Cineplex Mulls Sale, Hires Goldman and TD