China-owned AMC The­atres ups bid for ri­val Carmike

The Myanmar Times - - International Business -

US CIN­EMA chain AMC The­atres, con­trolled by China’s rich­est man Wang Jian­lin, in­creased its bid on July 25 for ri­val Carmike in its ef­fort to build the world’s largest theatre chain.

AMC En­ter­tain­ment Hold­ings, owned by Wang’s Mr Wanda con­glom­er­ate, said it was rais­ing its March cash-and-stock bid for Carmike Cin­e­mas by about 10 per­cent to US$33.06 per share, valu­ing Carmike at around $1.2 bil­lion.

The merger would cre­ate a com­pany with more than 600 theatre lo­ca­tions and 8380 screens across the United States.

While AMC’s orig­i­nal of­fer had been ac­cepted by Carmike’s board, it met with sig­nif­i­cant re­sis­tance from share­hold­ers as too low. AMC ar­gued that the new deal is a good one, of­fer­ing a 32 per­cent pre­mium on the value of Carmike shares com­pared with when the bid was first made.

It said that Carmike share­hold­ers who re­jected the orig­i­nal of­fer were re­ly­ing on anal­y­sis of the deal that is “ma­te­ri­ally flawed”.

“We con­tinue to be­lieve that the pro­posed merger be­tween AMC and Carmike is a com­pelling op­por­tu­nity that of­fers sig­nif­i­cant value to both com­pa­nies’ share­hold­ers,” said AMC chief ex­ec­u­tive Adam Aron in a state­ment.

“This lat­est agree­ment be­tween AMC and Carmike is our best and fi­nal of­fer for Carmike,” he added.

In a sep­a­rate state­ment Carmike’s board said it unan­i­mously sup­ported the bid, but still needed the back­ing of share­hold­ers. Carmike shares fell 1.2pc to $30.77 in mid­day trade, while AMC lost 1.6pc at $30.11.

Two weeks ago AMC an­nounced it was buy­ing the Lon­don-based Odeon & UCI cin­ema group, which has 242 cin­e­mas and 2236 screens in Europe, in a deal worth about $1.2 bil­lion.

Wanda, which through mainly real es­tate in­vest­ments has pro­pelled Mr Wang to the top of China’s rich list with a for­tune put by Forbes at $30 bil­lion, has been mak­ing a strong push into the en­ter­tain­ment in­dus­try, es­pe­cially in Hol­ly­wood. It bought AMC in 2012 for $2.6 bil­lion.

In Jan­uary this year it signed a $3.5 bil­lion deal to buy Hol­ly­wood stu­dio Leg­endary En­ter­tain­ment, the maker of block­busters ‘Juras­sic World’ and ‘Godzilla’. –

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