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So is the share price for CINE going up or down on Monday because of NHS workers forbidden to talk about 'it'?
Staff in the UK working for the NHS are forbidden from talking about it publicly, I wonder if that's because they will confirm the main stream narrative...?!
There have bee a lot of reports all over the world of doctors being "encouraged" to list deaths as coronavirus.
Just for info/views on this: the permission by Canadian authorities for the sale to proceed was crucial - and presumably, bearing in mind the time period this was initially discussed, would be outside any pandemic clauses - if any clauses affect the permission at all. Both parties were happy to proceed, everyone slapping backs and lighting cigars. Then, when it all started going wrong, we just dragged our feet bigtime to run down the clock....the onus was entirely on us to get Canadian permission and nothing plex could do could change that. Maybe, on the 11th, the regulators said ' due to insufficient time now remaining until the end date on the 30th to further discuss and finalise this matter, there is absolutely no way we can now authorise this sale'.....Simplistic I know, but just a thought.
I’m hoping CINE’s statement focuses entirely on broken conditions of the closing covenants in the Agreement Arrangement, and then a few words on MAE. Therefore leading strongly with a non-MAE related defence, as it’s obvious MAE is very much a roll of the dice and we would probably lose on that basis.
This should spook Plex somewhat, then they would be in a precarious position to take this to court and lose everything. Hopefully dropping the lawsuit best case scenario.
All will be revealed soon.
You can reissue an RNS so did cross my mind they should retract/replace and add a date in they are terminating : 1st July! Happy days :)
Regarding ‘unlikely’, yes there must be good reason or correspondence Cine have that the approval covenant breach was not going to cured by the long top date so they terminated.
As the Cine statement on the 12th mentions “an unwillingness to cure the breach”.
Either way, a bit of patience to July would have helped. Now we have to deal with this:
“Cineworld alleges that a material adverse effect has occurred with respect to Cineplex,” it said. But the agreement “explicitly excludes any ‘outbreaks of illness or other acts of God’ from the definition of material adverse effect and all of Cineworld’s allegations stem from an outbreak of illness.”
haha yeh "Sorry gents, but we got the dates wrong. All the best Mooky"
Hopefully the RNS doesn't say "we got the dates wrong, really sorry everyone.."
Yeah evidence tomorrow after the highly paid legal team have been busy since the lawsuit was filed...
@Haich Thanks for all the work...hmm I wonder what is meant by "unlikely"
"Other approvals per the conditions had been received, only approval was outstanding from Investment Canada and unlikely it was to come before long stop date per the terms of arrangement, hence Cine pulled."
I'm sure cine will hopefully have some evidence showing this unlikeliness or perhaps there was a legal reason that made it doubtful
Yeah we know netflix tried to buy regal but cineworld got it first https://www.thisismoney.co.uk/money/markets/article-8351307/Netflix-looked-bid-buy-2-4bn-Regal-Cinemas.html It's arguably a good buffer knowing there would be buyers in the worst case scenario, plus will always apply upward pressure on the price long term knowing a takeover could be a possibility in the future.
AND. if we are looking cheap enough for a takeover then the SP will jump about 40% so everyone’s a winner. Amazon might still be on the prowl.
Mange Tout Rodney
Let’s be honest here. We can pretend to be Columbo or a Harvey Spector but none of us really know. But the BOD who were borrowing 1.35 billion pounds to buy plex do. These are very large numbers and I expect them to know exactly what that are doing here. If we don’t trust their judgement then we are invested in the wrong company. This might be priced in already or it might drop a little. But the BOD are not too bothered about where the SP is now because they know where it’s going in the medium to long term. As put said yesterday they bought 1 million share at over 2 quid last year.
Chris it hit 1.00 previously because the US market is way over priced atm. People need to stop banging on about 1 quid plus plus etc as it’s not fair on the people joining the group. Which seems to happen when the SP starts rising.
Just in my opinion. Happy Sunday everyone
Just hope they'll be a strongly prepared statement out tomorrow that'll give confidence. Chances are CINE could end up with Cineplex anyway but at a reduced price as the company folds....it certainly looks like their last ditch stand.
Roll on tomorrow...eek
So...
We think it's the dates of the cut-off being breached, not the accumulation of further debt and a breach of clause 5 that is the reason?
...with COVID as the kicker.
HAHA
Thanks Moola.
That reads a lot better, I'll go with your version!
My understanding of what was just posted is that the cut off date had already passed or was about to pass giving Cineworld an out but Cineplex will complain that Cineworld dragged their feet in the process.
Back to the lawsuit.
Am I reading it correctly they withdrew because Canadian authorities had not given approval, however that approval may well have come before the cut off date?
If so, doesn't this leave Cine in a precarious situation?
I filtered him the other day for the same reasons, thought he had calmed down so took him off filter and now he's back on. People can give their opinion without shoving it down peoplea throats, i think 5 posts in a row is spamming and to be honest it's not balanced at all, extream right is just as bad as the extream left and thats what Alex Jones and a lot of the "news" sources he references is the extream right and as his leader and chief the Donald likes to say Fake news.
Wow, that changed from the lawsuit info to a rant pretty quick. So done positive findings about the lawsuit, do people think they'll be an RNS or rebuttal with further intentions first thing. 6% scapled off the SP on Fri could well have priced it in... maybe.. ..
The entire statistics profession has been disabused by C19. Everywhere.
Well said, Jay.
There is a disturbing trend towards more authoritarian government around the Western world because of Covid-19. And towards big business as millions of SME face bankruptcy in the next few months because of lockdown policies everywhere. The Corporate State never had it so good.
Other approvals per the conditions had been received, only approval was outstanding from Investment Canada and unlikely it was to come before long stop date per the terms of arrangement, hence Cine pulled. Very likely this is the covenant breached! Great article from Canada media below worth a read, a timeline of events..
News of the $2.8-billion, debt-financed deal first emerged in mid-December, with Cineworld agreeing to acquire all of the issued and outstanding common shares of Cineplex for $34 per share in cash. At the time, it was expected that the deal would close in the first half of 2020, pending approval from shareholders, Investment Canada and the Competition Bureau.
Built into the agreement was a “go-shop” period in which Cineplex was allowed to solicit offers from other buyers. During a seven-week period, Cineplex said it contacted 52 third parties but no superior offers emerged.
By Feb. 19, the deal had been approved by both sets of shareholders and the Ontario Superior Court of Justice. However, within three weeks of that, the COVID-19 pandemic had hit North America. On March 12, Cineworld reiterated its intention to move ahead with the transaction, but, as Hollywood tentpoles like James Bond: No Time To Die saw their release dates pushed back, a growing number of voices in the investment community began to question the viability of the deal against the backdrop of a pandemic.
As early as March 5, Forensic financial analysis company Hindenburg Research spooked Cineplex shareholders when it went to Twitter to predict the deal may “fall apart or be reduced in price.” Meanwhile, in early April, reports out of the U.K. suggested that Cineworld’s lenders were seeking to block the takeover, with insiders suggesting the deal could still go ahead but at a lower price.
At the end of March, both Cineplex and Cineworld laid off staff as cinema operators across the globe looked to curtail costs. In Canada, Cineplex temporarily laid off thousands of part-time workers and cut the salaries of its full-timers and executives.
As recently as May 8, both sides had publicly stated that they remained committed to completing the transaction. However, the language used in reference to the deal was beginning to change, with Cineplex noting there could be “no assurance that the conditions to closing the transaction will be satisfied” by June 30.
Adam Shine. managing director, assistant head of research and analyst (media and telecom) at National Bank Financial compared the deal to a game of football stuck at the one-yard line. “For much of the past three months, the takeover of Cineplex by Cineworld was basically stuck at the one yard line. With really only one more play to run, just get Investment Canada Act approval, WHO’s declaration of a pandemic on March 11 turned things into one endless timeout or rain delay. Suddenly one team had an out and it wasn’t entirely obvious how officials would manage through the process,”