Sony to merge Loews chain with Cineplex Entertainment

October 01, 1997|By BLOOMBERG NEWS

NEW YORK -- Sony Corp. and Cineplex Odeon Corp. said yesterday that Sony will merge its Loews Theaters unit with Cineplex to create one of the world's largest movie theater companies, with annual revenue of about $1 billion.

Sony will own 49.9 percent of the voting shares of the combined company, to be called Loews Cineplex Entertainment.

Seagram Co.'s Universal Studios, which already owned a Cineplex stake, will own 26.7 percent of the company after investing $85 million in the new company, the companies said.

The Charles Rosner Bronfman Family Trust will own 9.6 percent and public Cineplex shareholders will own 13.3 percent of the new company.

Charles R. Bronfman is a relative of Seagram Chief Executive Officer Edgar Bronfman Jr.

Cineplex Odeon shares will be exchanged for shares in the new company. Loews Cineplex will have about 452 million shares outstanding and will be traded on the New York and Toronto stock exchanges, the companies said.

The transaction is expected to close in about six months.

The combined company will operate more than 2,600 screens in about 450 theaters in the United States and Canada.

Pub Date: 10/01/97

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