Wanda’s AMC ups bid for rival Carmike

LOS ANGELES: American cinema chain AMC Theatres, controlled by China’s richest man Wang Jianlin, increased its bid on Monday for rival Carmike Cinemas in its effort to build the world’s largest theater chain.

AMC Entertainment Holdings, owned by Wang’s Wanda conglomerate, said it was raising its March cash-and-stock bid for Carmike by about 10 per cent to US$33.06 (RM134.35) per share, valuing it at around US$1.2 billion.

The merger would create a company with more than 600 theater locations and 8,380 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 per cent premium on the value of Carmike shares compared with when the bid was first made.

It said 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. AFP