Cineworld shares plunge after losing ruling on canceled Cineplex takeover

Cineworld shares fell nearly 40% in early trading Wednesday after a Canadian court ruled that the world’s second-largest movie theater chain suffered $1.2 billion in damages ($934 million). USA) due to being taken over by rival Cineplex.

London-listed Cineworld says the Ontario Superior Court of Justice has ruled in favor of Canada’s Cineplex, accusing the UK corporation of breaching its obligations by pull on the takeover was agreed at the end of 2019, weeks before the coronavirus pandemic hit.

The two companies have been at odds ever since, with Cineworld launched a protest request against its previous takeover target. As well as C$1.23 billion in what Cineworld calls a lost synergy, the company said the Ontario courts also awarded Cineplex C $5.5 million in lost transaction costs.

Shares of Cineworld fell as much as 36 per cent to 29p in early London trading.

“Cineworld disagrees with this ruling and will appeal the decision,” the company added. “Cineworld does not expect damages to be paid while any appeal is ongoing.” Cineworld shares plunge after losing ruling on canceled Cineplex takeover

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