Canada's Cineplex adopts poison pill

Reuters

Published Jun 19, 2020 05:54PM ET

(Reuters) - Cineplex Inc (TO:CGX) said on Friday it adopted a shareholder rights plan, popularly known as a "poison pill", nearly a week after Britain's Cineworld Group Plc (L:CINE) abandoned its $1.65 billion deal to buy the Canadian theater chain.

The implementation of the rights plan will prevent investors from acquiring 20% or more of the company's outstanding common shares without complying with certain provisions of the plan, Cineplex said http://pdf.reuters.com/htmlnews/htmlnews.asp?i=43059c3bf0e37541&u=

Cineworld scrapped the deal last week citing what it termed Cineplex's breaches in the merger agreement between the cinema operators.

The rights plan has not been adopted in response to any specific takeover bid or other proposal to acquire control of Cineplex, it added.