Published on 6/07/2020 3:00:04 PM | Source: Reuters

Cineworld plans counter-claim against Cineplex over scrapped deal

Posted in Top Stories| #World Market

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Britain's Cineworld said on Monday it plans to make a counter-claim against Cineplex for damages and losses following a failed acquisition.

The Canadian company has sued Cineworld, seeking damages after the British cinema operator scrapped its $1.65 billion buyout deal last month.

The Cineplex claim seeks damages, including about C$2.18 billion that Cineworld would have paid upon the closing of the deal.

Cineworld said on Monday it did not breach any obligations or duties, adding if Cineplex's claim is successful, it would be limited to its costs and expenses incurred as part of the deal.

The company would not be assessed by reference to the consideration that was payable as part of the deal agreement, Cineworld said.

The Regal cinema owner on June 12 abandoned the deal, citing what it termed the Canadian company's breaches in the merger agreement.

Cineplex has denied these claims and said Cineworld's allegations stem from the impact of the coronavirus outbreak.

Cineworld's shares were up 4.7% at 62.9 pence in early trade.

(Reporting by Tanishaa Nadkar in Bengaluru; Editing by Sriraj Kalluvila)