Film-Tech Forum ARCHIVE: Loews Cineplex on the market again

This is topic Loews Cineplex on the market again in forum Film-Yak at Film-Tech Forum ARCHIVE.

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Posted by Ron Keillor (Member # 1790) on 03-12-2004, 08:57 PM:

from cbc.ca
"Fri, 12 Mar 2004 16:03:27
TORONTO - Onex Corp. (TSX:OCX) and its partner in Loews Cineplex Entertainment confirmed Friday that they are exploring "strategic alternatives" for the theatre chain, including selling it.
Investment banking firms Citigroup Global Markets Inc. and Credit Suisse First Boston have been hired to assist in the process.
Onex's partner in Loews Cineplex is Oaktree Capital Management, a Los Angeles-based private investment firm.
Reports that Loews Cineplex was being shopped around surfaced 10 days ago. Late last year, the company talked with AMC Entertainment about a possible merger, but Onex said those talks fell apart in January.

02 Mar 2004 16:06:11
NEW YORK - Onex Corp. (TSX:OCX) may be looking for a buyer for its Loews Cineplex Entertainment unit, according to a newspaper report.
The New York Post says Onex is shopping around Loews and is in the process of hiring investment bank Credit Suisse First Boston to help it explore strategic alternatives for the chain.
The paper said possible buyers include buyout firms Carlyle Group, Bain Capital, Thomas H. Lee Partners and Spectrum Equity, as well as other movie chain companies such as Regal Entertainment Group and AMC Entertainment.
The Post said Loews might also be exploring an initial public offering of what it called "enhanced income securities" to raise money. These securities bundle common stock and notes in a single package that pays investors both dividends and interest, the paper said.
Late last year, AMC talked to Loews Cineplex regarding a possible merger, but Onex said those talks fell apart in January.
Onex bought 51 per cent of Loews Cineplex after the chain filed for bankruptcy protection in 2001.
Loews Cineplex operates the oldest theatre chain in North America. It has 2,835 screens in 285 markets."

I wonder if the sale would require the acquisition of lawyers in the executive who did a better job of engineering bankruptcy than running the theatres.

Posted by Daryl C. W. O'Shea (Member # 1303) on 03-13-2004, 01:16 AM:

Onex wants out of the theatre business and into the airline industry. If they can't sell it they'll spin it.

Posted by Nicholas Suchyta (Member # 2050) on 03-15-2004, 10:53 PM:

I think if everyone on the site threw in a few dollars, we could start our own company. Film-Tech Cineplex. Has a nice ring to it.

Posted by Steve Kraus (Member # 476) on 03-15-2004, 11:00 PM:

Nah...you gotta keep the Loews name. That's the famous old name, once upon a time owning MGM.

Posted by Blake Zaugg (Member # 1455) on 03-15-2004, 11:02 PM:

Could someone explain how that affects Cineplex Galaxy? I've never really understood the whole merger issue...who bought who from whom and now what does it mean? Also, when they put the whole thing up for sale are they looking for a complete sale or would they break it up to several buyers?

Posted by Daryl C. W. O'Shea (Member # 1303) on 03-16-2004, 01:08 PM:

Onex getting rid of Loews Cineplex has little to do with them starting the Cineplex Galaxy Income Fund to start Cineplex Galaxy LP, since they are entirely separate companies.

The only thing common between the two is that Onex, and Oaktree, want less to do with the theatre business.