The Financial Post reports in its Friday, Oct. 2, edition that last week, Cineplex said it was considering a sale as part of a strategic review.
Postmedia's Serah Louis writes that Cineplex is by far the largest movie theatre chain in Canada.
Cineplex operates 1,595 screens across more than 150 movie theatres around the country. The next largest chain in Canada, Landmark Cinemas (owned by Belgium cinema operator Kinepolis Group NV), has just 36 theatres with about 300 screens.
In September, Cineplex released a memo announcing its board had launched a review of strategic alternatives for the company, including a potential sale, in order to maximize shareholder value at a time of relative strength.
Toronto-based retail analyst Bruce Winder said a strategic review can involve selling all or part of the company, taking on a new partner or starting a joint venture.
Now may be an opportune moment for Cineplex, which has been riding the high of several blockbusters this year, such as The Odyssey, to consider its options, Mr. Winder said. In its latest quarterly report, Cineplex reported its best second quarter in the company's history with a profit of $7.8-million.
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