Cineplex Inc., Canada's largest movie theater chain, is likely to receive offers worth half of what it could have fetched before the pandemic if it decides to sell. The Toronto-based firm announced this week it has hired Goldman Sachs and TD Securities to help it conduct a strategic review that may lead to a sale. Longtime CEO Ellis Jacob was replaced by Bill Walker, but Jacob will remain involved as a strategic adviser to the board.

In 2019, Cineplex agreed to be acquired for C$34 a share in cash by Cineworld Group, but that deal fell apart due to severe losses during the pandemic. National Bank of Canada analyst Adam Shine noted the likely starting point for any initial bid is possibly at a level or within a range that is half of the price finally offered by Cineworld. That amount may move higher if bid tension ensues, and could involve both cash and stock this time around.

Shine added that while 2025 still didn't have a full slate of film releases, 2026 finally delivered more optimal volume. Cineplex's stock closed at C$12.90 Thursday in Toronto, up more than 20% for the year to date and giving the company a market capitalization of C$813 million ($575 million). The shares fell about 1% in early trading Friday.