By Terril Yue Jones
BEIJING, May 21 (Reuters) – Wanda Group, one of China’s
largest theatre owners, has agreed to buy AMC Entertainment in a
deal valued at $2.6 billion, creating the world’s biggest cinema
operator, the companies said.
Off-and-on discussions between the companies began more than
a year ago and grew serious after AMC, the world’s largest
operator of IMAX screens, cancelled its plans to go public,
according to media reports.
“This acquisition will help make Wanda a truly global cinema
owner, with theatres and technology that enhance the movie-going
experience for audiences in the world’s two largest movie
markets,” Wang Jianlin, chairman and president of Wanda, said in
a press release on Monday.
Wanda will invest up to an additional $500 million in AMC,
the company said, and has reached an agreement for AMC’s
management team to stay on after the deal closes.
The transaction is not expected to affect employee levels at
Kansas City, Missouri-based AMC, said the companies.
Wanda operates 86 theatres with 730 screens, and large-scale
live stage shows, film production and distribution, and
entertainment chains.
AMC has been owned since 2004 by an investment group that
includes the Apollo Investment Fund, J. P. Morgan Partners, Bain
Capital Investors, the Carlyle Group and others.
