Wanda Lowers Stake In AMC Entertainment

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(RTTNews.com) - Chinese conglomerate Dalian Wanda has lowered its stake in AMC Entertainment Holdings Inc.

AMC said it has raised $600 million investment from private equity firm Silver Lake. The company said it sold senior notes due 2024 to Silver Lake bearing interest at 2.95% and convertible into AMC Class A common stock at $20.50 per share.

AMC used about $420 million from the investment to buy back about 24 million shares from Wanda at $17.50 per share, a 12.9% discount to Thursday's closing price. Wanda had acquired AMC for $2.6 billion in 2012.

AMC said it will also pay a special dividend of $1.55 per share to all AMC Class A and Class B common shareholders of record as of September 25, 2018. The special dividend will not be paid to Wanda on the shares repurchased by AMC.

Transaction will be cash flow accretive to AMC in 2019 and beyond.

Adam Aron, AMC CEO and President said "We are also truly pleased that Wanda is continuing with its longstanding commitment to AMC. Wanda's majority ownership began in 2012, and they are expected to remain a sizable and supportive shareholder for AMC into the future."

Read the original article on RTTNews (http://www.rttnews.com/2935134/wanda-lowers-stake-in-amc-entertainment.aspx)

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

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