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3w ago

Activist Pushes Cineplex for Major Buybacks and Asset Sales as Company Renews Repurchase Program

Windward argues a box-office rebound creates a window to fund repurchases with cash from selling non-core assets.

Fifth Avenue Cinemas, a Cineplex theatre, on Burrard Street in Vancouver on Aug. 25, 2025. Cineplex CEO Ellis Jacob has rejected the idea from an activist investor hedge fund of ramping up the company’s existing share buyback program.

Overview

  • Windward Management went public with an open letter urging Cineplex to accelerate shareholder returns, disclosing a roughly 7% stake in the company.
  • The activist proposes repurchasing about 55% of Cineplex’s market capitalization over six quarters to lift the share price.
  • Windward’s plan includes exploring the sale of Cineplex’s digital media business and a 33% stake in Scene+, estimating proceeds of about $220 million.
  • Windward cites recent momentum, noting April through July marked four straight months of roughly $50 million in box-office revenue, and points to a stronger slate through 2027.
  • Cineplex CEO Ellis Jacob said the company welcomes input, renewed its normal course issuer bid last week, and continues to review divestment options, as shares rose nearly 6% to $11.33 Monday morning.