Carmike Cinemas Shareholders Approve $1.2-B AMC Merger
Chinese-owned AMC Entertainment Holdings is on course to become the world’s biggest theater chain.
AMC Entertainment Holdings (NYSE:AMC) has jumped another hurdle to becoming the world’s largest exhibitor.
Chinese-owned AMC, the 2nd-largest US theater chain, Tuesday secured shareholder approval from Carmike Cinemas (NASDAQ:CKEC) for its amended $1.2-B merger priced at a raised 33.06/share and some AMC stock.
“We are pleased with the outcome of today’s vote,” David Passman, Carmike President/CEO, said a statement following the extraordinary shareholder meeting in Atlanta.
Just over 86% of the shares voted at the meeting went in favor of the merger, representing around 72% of Carmike’s outstanding stock. Now AMC awaits a review by the US Department of Justice (DOJ) on the proposed combination, with completion of the deal expected by the end of the year.
The shareholder vote on combining AMC’s 5,426 screens with Carmike’s 2,954 screens had been delayed 3 times since the deal for Carmike was unveiled in March 2016.
With the Carmike deal closer to happening, AMC is set to jump ahead of the Regal Entertainment Group, which is currently the top chain, to become the biggest theater circuit in the US and around the world.
AMC, set to have more than 600 theater locations in 45 US states once the Carmike sale goes ahead, has a separate $1.2-B deal to buy European cinema giant Odeon & UCI Cinemas Group.
Odeon/UCI has 242 cinemas and 2,236 screens mainly in the UK, Spain, Italy and Germany, with some screens in Austria, Portugal and Ireland.
The Odeon/UCI acquisition has secured shareholder approval.
AMC Entertainment Holdings is a subsidiary of the Chinese conglomerate Dalian Wanda Group, which acquired AMC for $2.6-B in Y 2012.