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AMC Entertainment to buy Carmike in deal valued at $1.1 billion

AMC Entertainment to buy Carmike in deal valued at $1.1 billion
March 4, 2016
LOS ANGELES - AMC Entertainment Holdings will acquire Carmike Cinemas Inc in a deal valued at about $1.1 billion (£776.67 million), including debt, making the combined company the largest US theatre chain. Chinese property and investment firm Dalian Wanda Group had acquired AMC Entertainment for $2.6 billion in 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 billion on overseas acquisitions in 2015, the most ever. In February ChemChina agreed to buy Swiss seeds and pesticides group Syngenta AG for $43 billion. AMC will pay $30 per share in cash to buy all of Carmike's outstanding shares, which represents a premium of about 19.5 percent 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 between $3 billion and $4 billion. AMC, the second-largest movie theatre chain in North America, currently has 387 locations and 5,426 screens while Carmike has 276 theaters with 2,954 screens in 41 states. -Reuters