AMC Entertainment CEO Adam Aron meant it when he said yesterday that he expected an “imminent” closing of his $1.1 billion cash and stock acquisition of Carmike Cinemas after agreeing to Justice Department terms for the deal.
Dalian Wanda Group-controlled AMC became the nation’s largest exhibition chain this morning by consummating the transaction. It became the world’s largest theater chain last month with the closing of its $1.2 billion acquisition of UK-based Odeon & UCI Cinemas
“AMC now has a larger audience and a bigger stage to introduce our industry-leading innovations including plush power-recliner seats, enhanced food and beverage choices and premium large format screens,” Aron says. The company “now will enjoy increased benefit from movies that play better on Main Street and movies that play better in major metros, and, of course, from movies that play well in both.”
Carmike will operate as a wholly-owned subsidiary of AMC. Trading in its stock was suspended before the market opened.
AMC has about 388 theaters with 5,295 screens in 33 states and the District of Columbia. Carmike has 271 movie theaters with 2,917 screens in 41 states.
Carmike investors had the option of swapping each share for either $33.06 in cash or 1.0819 share of AMC. Holders of more than 23 million Carmike shares, equal to 91.1% of the total, took AMC stock. It will be prorated, meaning that they’ll receive stock for about 32.9% of the shares and cash for the rest.
About 1.2 million took the cash. The remaining holders, with a little under 1 million shares, did not make a choice and will receive cash.