TORONTO — Cineplex Inc. has agreed to a friendly takeover that values the operator of Canada's largest chain of movie theatres at $2.8 billion.

The offer from Cineworld Group PLC includes an offer of $34 per share cash, which is 42 per cent above the Friday closing price for Cineplex shares.

Cineworld will also take on debt owed by the Toronto-based company.

Cineplex has 165 movie theatres across Canada, making it by far the country's largest chain.

It has also diversified into a variety of entertainment-related businesses including advertising, events programming and the Rec Room — a chain of locations serving food, drink and amusements.

The companies expect the transaction to close in the first half of 2020.

This report by The Canadian Press was first published Dec. 15, 2019.

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