Largest US theater chain takeover by Chinese firm for $2.6 billion
Dalian Wanda Group of China Monday said it has agreed to acquire AMC Entertainment, the second largest theater chain in the US with 346 multiplexes in America and Canada, for a staggering $2.6 billion.
Dalian Wanda Group said in a statement that the $2.6 billion worth deal would create the world's largest cinema owner.
AMC, based in Kansas City, is owned by several investment firms, including JPMorgan Partners, Apollo Investment Fund and Bain Capital Investors.
The deal that has been in the negotiations for almost a year marks the largest investment so far by a Chinese company in the US entertainment industry.
This is also Wanda's first investment outside of China and its first foray into the US and Canada, the world's biggest film market with ticket sales of $10.2 billion, according to Reuters.
The acquisition by Wanda, controlled by billionaire Wang Jianlin, will include about $1.9 billion of net debt, Reuters quoted a source "with knowledge of the matter" as saying.
"Wanda has also made a commitment to invest up to $500 million for operations," Wang, who is also Wanda's chief executive, told reporters in Beijing.
"We will continue to invest cash after the merger. The cash will be used for updating hardware and reducing debt."
He said the transaction will help make Wanda a "truly global cinema owner, with theaters and technology that enhance the moviegoing experience for audiences in the world's two largest markets".
AMC Chief Executive Gerry Lopez said the time has never been more opportune to welcome the "enthusiastic support of our new owners" as the film and exhibition business continues its global expansion.
Source: The Asia News.Net
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