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China's Dalian Wanda trims AMC exposure with Silver Lake deal


Reuters


Sept 14 (Reuters) - AMC Entertainment Holdings Inc said on Friday it bought back 24 million shares from its top investor Dalian Wanda Group and issued $600 million worth of convertible notes to private equity firm Silver Lake.

Earlier in September, Reuters reported Wanda was exploring a deal to cut its stake in AMC, as the Chinese billionaire Wang Jianlin's real estate-to-media conglomerate was under pressure from the country's regulators to reduce overseas holdings.

After the transaction, Wanda now owns about 38 percent of AMC shares, down from its previous majority stake of about 60 percent. As part of the deal, Silver Lake will get a seat on AMC's board and a two-year right of first refusal on certain future transfers of AMC's shares by Wanda.

In 2017, Chinese regulators told banks to stop providing funding to companies such as Wanda, HNA Group Co Ltd and Anbang Insurance Group Co Ltd for overseas acquisitions, amid concerns over financial overstretching.




This article appears in: Politics , World Markets , Stocks , Technology
Referenced Symbols: AMC



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