TORONTO | The canadian Cineplex has promised to sue the british company Cineworld Group who refuses to go forward with its acquisition.
Last December, the two companies have announced that Cineworld will purchase all of the shares of Cineplex at a price of $ 34 share for a total amount estimated at more than $2 billion.
Gold, Friday, Cineplex reported that Cineworld has delivered a notice to terminate the merger, which is expected to create one of the giants in the middle of the cinema with term 11 200 screens in the world.
“The transaction will not continue”, a-t-is indicated by press release.
The british company alleges that “coca-cola has taken a number of actions that are violations of restrictive covenants Cineplex […] as does not operate its business in the ordinary course of business”.
In addition, Cineworld alleged that a material adverse effect has occurred with respect to the Cineplex.
Cineplex has vigorously denied the allegations, claiming that there was “no legal basis to terminate” the agreement and argues that Cineworld has failed to fulfil its contractual obligations.
The company, based in Toronto, has stated that it intends to promptly initiate legal proceedings against Cineworld and ask for damages for non-fulfilment of its obligations.