Film-Tech Forum ARCHIVE: Loews Cineplex Canada spinoff

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Posted by Ron Keillor (Member # 1790) on 10-03-2003, 09:05 PM:

By Ottawa Business Journal Staff
Fri, Oct 3, 2003 2:00 PM EST

After days of media speculation, Toronto-based conglomerate Onex Corp. confirmed Friday that it intends create an income trust that will include all of its Canadian movie theatre assets.

Onex, headed up by high-profile financier Gerry Schwartz, said it has aleady filed a preliminary prospectus with securities regulators for the initial public offering. RBC Capital Markets and Scotia Capital will serve as lead underwriters of the issue.

The Cineplex Galaxy Income Fund will use the proceeds of the IPO to buy the Canadian assets of Loews Cineplex Entertainment Corp. and the shares of Galaxy Entertainment Inc.

Loews Cineplex is an industry giant with more than 2,800 screens in 281 theatres across Canada, the United States, Spain and South Korea.

Onex said Loews and the current shareholders of Galaxy will retain an interest in the trust.

The trust will "own, operate or have an interest in 81 theatres with 731 screens in Canada, and continue to be one of the two leading film exhibition companies in the country," Onex said in a statement.

Loews Cineplex will operate 583 of those screens, while Galaxy will claim the remaining 148.

Talk of such an offering has been swirling about Bay Street since last fall. Investment bankers had predicted the IPO could be worth as much as US$300 million.

Posted by Bobby Henderson (Member # 840) on 10-03-2003, 09:42 PM:

Just purely off topic, Ron --but your photo looks strangely similar to Dwight Yoakum as "Raoul" in "Panic Room."

I just look like a nerd in mine. [Big Grin]