Q: Good Morning and Happy New Year !!
CGX used to be a market darling prior to Covid 19. Their long serving CEO is slated to retire in 2026. According to a BNN guest, the CEO's employment contract has a clause whereby he would receive a payment of $12 Million CDN if the company was sold prior to his retirement. Prior to the pandemic, Cineworld agreed to purchase Cineplex for $2.8 Billion. That of course fell through and CGX received a settlement of $1.23 Billion from Cineworld.
The BNN guest felt that CGX shareholders would fetch north of $30 per share if a transaction were to take place.
I just was curious as to your opinion of this situation ?
Thank you so much for all that you do. DL
CGX used to be a market darling prior to Covid 19. Their long serving CEO is slated to retire in 2026. According to a BNN guest, the CEO's employment contract has a clause whereby he would receive a payment of $12 Million CDN if the company was sold prior to his retirement. Prior to the pandemic, Cineworld agreed to purchase Cineplex for $2.8 Billion. That of course fell through and CGX received a settlement of $1.23 Billion from Cineworld.
The BNN guest felt that CGX shareholders would fetch north of $30 per share if a transaction were to take place.
I just was curious as to your opinion of this situation ?
Thank you so much for all that you do. DL
5i Research Answer:
Cineworld has has significant financial issues, though not technically bankrupt. But we doubt...