AMC Entertainment to Buy Carmike Cinemas
March 03 2016 - 9:10PM
Dow Jones News
AMC Entertainment Holdings Inc. agreed to buy Carmike Cinemas
Inc. in a deal that would make a Chinese-owned company the largest
movie-theater operator in the U.S.
AMC will pay $30 a share for Carmike for a total payout of $1.1
billion, including the assumption of some Carmike debt, the
companies said Thursday. The price is a nearly 20% premium to
Carmike's closing share price of $25.11 on Nasdaq.
The deal would also make AMC the world's largest movie-theater
operator.
AMC was purchased in 2012 by China's Dalian Wanda Group Corp.
for $2.6 billion. Before the Carmike deal, it was the nation's
second-largest exhibitor, behind Regal Entertainment Group.
AMC's 5,425 screens are concentrated in urban locations, while
Carmike's roughly 2,954 screens tend to be in more suburban and
rural areas.
The exhibition industry had its highest-grossing year on record
last year thanks to hits like "Star Wars: The Force Awakens," a
performance that was reflected in recent quarterly earnings at both
companies.
Write to Erich Schwartzel at erich.schwartzel@wsj.com
(END) Dow Jones Newswires
March 03, 2016 20:55 ET (01:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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