The acquisition of London-based Odeon & UCI widens the lead of Wang’s Dalian Wanda Group as the world’s No 1 operator of movie screens while easing pressure on the company’s US-based unit, AMC, to complete its deal for Carmike.
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Aron on Tuesday noted the Europe agreement comes amid both “uncertainties” and the “highly favorable” currency rates following Britain’s recent exit vote from the European Union, dubbed “Brexit” The British pound has plunged to a 30-year low against the US dollar.
His group owns more than 200 malls, shopping complexes and luxury hotels across China.
Odeon & UCI oversee 242 theaters and 2,236 screens, selling 90 million tickets annually, according to MarketWatch.
The £921m deal will create the largest movie theatre operator in the world.
Entertainment said that based on the presumption that the transaction would close before the current year ends, the transaction is worth at about $1.199 billion under UK GAAP.
Aron warned that there’s “considerable risk” that the Carmike deal will collapse. AMC is still committed to saving the deal if possible. “We are confident that under AMC’s ownership, Odeon & UCI will continue to grow and thrive”.
AMC will pay about $660 million in cash and stock for Odeon & UCI and assume about $540 million in debt, the companies said Tuesday.
But that proposed deal has been met with resistance from some Carmike shareholders who have agitated for a higher price.
The transaction is conditional upon antitrust clearance by the European Commission and is subject to consultation with the European Works Council. He said a European regulatory review would be perfunctory as AMC has just one theater in all of the United Kingdom and Europe combined. The company added that it would be placed on accelerating AMC’s proven growth initiatives, featuring recliner seating, improved food and beverage and premium large format auditoriums.
The language was the “clearest yet” that AMC won’t raise its bid, said Ben Mogil, an analyst with Stifel Nicolaus & Co., in a research note Tuesday.
Shares of Carmike rose 65 cents, or almost 2.2 percent, closing at $30.30 apiece in trading Tuesday on the Nasdaq exchange. AMC surged 7.3 per cent to US$29.80, the biggest single-day advance since February 16.
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