AMC (NYSE:AMC) Buys Carmike, Forms Largest US Cinema Chain

AMC Buys Carmike, Forms Largest US Cinema Chain

$AMC, $CKEC

AMC Entertainment Holdings (NYSE:AMC) will acquire Carmike Cinemas Inc (NASDAQ:CKEC) in a deal valued at about $1.1-B, including debt, making the combined company the largest US theater chain.

Chinese property and investment firm Dalian Wanda Group had acquired AMC Entertainment for $2.6-B in Y 2012.

The deal is the latest in a series of acquisitions of US companies and assets by Chinese firms.

Chinese companies have been aggressively splurging on foreign acquisitions to sidestep slowing domestic growth. Chinese firms spent more than $100-B on overseas acquisitions in Y 2015, the most ever.

The Company will pay $30/share in cash to buy all of Carmike’s outstanding shares, which represents a premium of about 19.5% to Carmike’s Thursday’s close.

The transaction will be funded through a combination of existing liquidity, including cash on hand, and incremental debt. The debt financing commitment is being provided by Citigroup Global Markets Inc.

Dalian Wanda Group also agreed to acquire a majority stake in Legendary Entertainment earlier this year, valuing the US movie studio company at nearly $4-B.

AMC, the 2nd-largest movie theater chain in North America, currently has 387 locations and 5,426 screens while Carmike has 276 theaters with 2,954 screens in 41 states.

Have a terrific weekend.

Paul Ebeling

HeffX-LTN

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