Cineplex Galaxy Income Fund
TSX : CGX.UN

Cineplex Galaxy Income Fund
Cineplex Entertainment

April 02, 2007 09:17 ET

Cineplex Galaxy Income Fund Announces Unit Exchange

TORONTO, ONTARIO--(CCNMatthews - April 2, 2007) - Onex Corporation (TSX:OCX) and Cineplex Galaxy Income Fund (TSX:CGX.UN) announced today that Onex' effective controlling interest in Cineplex Entertainment has been reduced to approximately 23.7% as a result of an exchange of units of Cineplex Entertainment LP for Fund units by certain of its minority investing partners. In this transaction, Onex has not sold nor exchanged any of its Cineplex Entertainment LP units for Fund units. Onex continues to own or control, directly or indirectly, an aggregate of 14,866,434 units of Cineplex Galaxy Income Fund and units of Cineplex Entertainment LP exchangeable for units of the Fund, representing approximately 23.7% of the units of the Fund that are outstanding on a fully-diluted basis (assuming the exchange of all outstanding units of Cineplex Entertainment LP and the conversion of all outstanding convertible debentures of the Fund).

Under agreements entered into in connection with the Fund's IPO in 2003, the Onex group will continue to have the right to appoint three of the seven members of the Board of Directors of Cineplex Entertainment Corporation ("Cineplex Entertainment GP"), the general partner of Cineplex Entertainment LP, for so long as it continues to hold at least 20% of the outstanding Fund units on a fully-diluted basis. No change in the composition of the Cineplex Entertainment GP Board is required or anticipated as a result of the transactions referred to above. Further, while the Onex group will no longer have the right to appoint a member of the Board of Trustees of the Fund, no change of trustees is currently anticipated.

About Cineplex Entertainment Limited Partnership

Headquartered in Toronto, Canada, Cineplex Entertainment LP owns, leases or has a joint-venture interest in 128 theatres with 1,290 screens serving approximately 60 million guests annually. Cineplex Entertainment LP is the largest motion picture exhibitor in Canada operating theatres with the following brands: Cineplex Odeon, Galaxy and Famous Players (including Coliseum, Colossus and SilverCity) and Scotiabank Theatre Toronto. The units of Cineplex Galaxy Income Fund, which owns approximately 75.7% of Cineplex Entertainment LP (after reflecting the above-noted exchange of units), are traded on the Toronto Stock Exchange (symbol CGX.UN). For more information, visit us at www.cineplex.com.

About Onex

Onex is a diversified company with annual consolidated revenues of approximately Cdn$19 billion and consolidated assets of approximately Cdn$23 billion. Onex is one of Canada's largest companies with global operations in service, manufacturing and technology industries. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com.

Security filings by Onex and Cineplex Entertainment Income Fund can be accessed at www.sedar.com.

Contact Information

  • Cineplex Entertainment
    Pat Marshall
    Vice President, Communications and Investor Relations
    (416) 323-6648
    Website: www.cineplex.com
    or
    Onex
    Timothy Duncanson
    Managing Director
    (416) 362-7711
    Website: www.onex.com