AMC Entertainment Holdings, Inc. Sells 12.0 Million Shares of National CineMedia, Inc. Common Stock
September 18 2017 - 7:58AM
Business Wire
Consistent with previous AMC announcement to
monetize up to $400 million in assets and in furtherance of initial
DOJ divestiture requirements
AMC Entertainment Holdings, Inc. (NYSE: AMC) (“AMC” or “the
Company”) announced today it has entered into an agreement to sell
12.0 million shares of National CineMedia, Inc. (NASDAQ: NCMI)
(“NCM”) common stock to Standard General, L.P. (“Standard General”)
for approximately $73.1 million, representing a price of $6.09 per
share. The purchase price was calculated using the five-day
volume-weighted average price of NCM shares ending on Friday,
September 15, 2017. The sale is scheduled to be completed on
September 20, 2017.
This transaction represents more than 80% of the NCM shares
required to be sold in 2017 by AMC under the consent decree with
the U.S. Department of Justice in connection with AMC’s acquisition
of Carmike Cinemas, Inc. in December 2016. The Company expects to
meet the DOJ’s consent decree’s requirement of owning less than 15%
of NCM on or before December 20, 2017.
This transaction is consistent with AMC’s previously announced
plan to identify approximately $400 million of non-strategic assets
that could be monetized over the next 24 months. This NCM share
sale represents the third significant AMC asset monetization
announcement since it announced this plan on August 4, 2017.
On August 8, 2017, AMC announced it had sold its 50 percent
stake in Open Road Releasing, LLC (Open Road Films) resulting in
$14.4 million in cash proceeds. On September 14, 2017, AMC
announced a sale leaseback agreement for seven of its U.S. theatres
which generated approximately $128 million of cash proceeds.
Commenting on the NCM stock sale, AMC CEO and President Adam
Aron said: “We continue to greatly value our relationship with NCM
and are pleased to place this block of stock with a successful
media investor, Standard General. This transaction will allow AMC
to continue to strengthen our balance sheet, enhance our liquidity
position and execute on our strategic capital allocation plans. Our
strengthened financial position comes at a time when we are
positioned to take advantage of a solid fourth quarter industry box
office and growing consumer demand for our spectacular guest
amenities.“
Citigroup Global Markets Inc. served as exclusive financial
advisor to AMC on the transaction.
AMC Entertainment Holdings, Inc.
AMC (NYSE: AMC) is the largest movie exhibition company in the
U.S., in Europe and throughout the world with approximately 1,000
theatres and 11,000 screens across the globe. AMC has propelled
innovation in the exhibition industry by: deploying more plush
power-recliner seats; delivering enhanced food and beverage
choices; generating greater guest engagement through its loyalty
program, web site and smart phone apps; offering premium large
format experiences and playing a wide variety of content including
the latest Hollywood releases and independent programming. AMC
operates among the most productive theatres in the United States’
top markets, having the #1 or #2 market share positions in 22 of
the 25 largest metropolitan areas of the United States, including
the top three markets (NY, LA, Chicago). Through its Odeon
subsidiary AMC operates in 14 European countries and is the # 1
theatre chain in Estonia, Finland, Italy, Latvia, Lithuania, Spain,
Sweden and UK & Ireland. For more information, go to
www.amctheatres.com.
Website Information
This press release, along with other news about AMC, is
available at www.amctheatres.com. We routinely post information
that may be important to investors in the Investor Relations
section of our website, www.investor.amctheatres.com. We use this
website as a means of disclosing material, non-public information
and for complying with our disclosure obligations under Regulation
FD, and we encourage investors to consult that section of our
website regularly for important information about AMC. The
information contained on, or that may be accessed through, our
website is not incorporated by reference into, and is not a part
of, this document. Investors interested in automatically receiving
news and information when posted to our website can also visit
www.investor.amctheatres.com to sign up for E-mail Alerts.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
“forecast,” “plan,” “estimate,” “will,” “would,” “project,”
“maintain,” “intend,” “expect,” “anticipate,” “prospect,”
“strategy,” “future,” “likely,” “may,” “should,” “believe,”
“continue,” “opportunity,” “potential,” and other similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters. These
forward-looking statements are based on information available at
the time the statements are made and/or management’s good faith
belief as of that time with respect to future events, and are
subject to risks, trends, uncertainties and other facts that could
cause actual performance or results to differ materially from those
expressed in or suggested by the forward-looking statements. These
risks, trends, uncertainties and facts include, but are not limited
to, risks related to (i) the risk that the conditions to closing of
the sale of NCM shares may not be satisfied and (ii) potential
litigation, including relating to the proposed sale of NCM shares.
Should one or more of these risks, trends, uncertainties or facts
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated or
anticipated by the forward-looking statements contained herein.
Accordingly, you are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date they
are made. Forward-looking statements should not be read as a
guarantee of future performance or results, and will not
necessarily be accurate indications of the times at, or by, which
such performance or results will be achieved. For a detailed
discussion of risks, trends and uncertainties facing AMC, see the
section entitled “Risk Factors” in AMC’s Annual Report on Form
10-K, filed with the SEC on March 10, 2017, and the risks, trends
and uncertainties identified in its other public filings. AMC does
not intend, and undertakes no duty, to update any information
contained herein to reflect future events or circumstances, except
as required by applicable law.
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AMC Entertainment Holdings, Inc.INVESTOR
RELATIONS:John Merriwether,
866-248-3872InvestorRelations@amctheatres.comorMEDIA
CONTACTS:Ryan Noonan, (913) 213-2183rnoonan@amctheatres.com
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