Cineplex share price / hostile takeover16 Dec 2021 16:10
Cineplex's share price increased from CAD 11.8 two days ago to around CAD 13.30 today - just a 12% rise. It's market cap is currently around CAD 830 mil. The 'damages' awarded were CAD 1,200 mil significantly more than the company's market cap. Clearly the market does not believe Cineplex is going to get the money any time soon, if at all.
Interestingly, Mooky was proposing to buy the shares at CAD 34 / share back in 2019 at a CAD10 premium over the then share price. He can now pick up the company up at a third of that price and and save money on the fine. How about a hostile take-over as a way out of paying the damages - it could be cheaper!!!
Any ideas why Cineplex shares are still so cheap?