AMC to Be Bought for $1.67 Billion
AMC Entertainment Inc., the No. 2 U.S. cinema chain, said Thursday that it agreed to be bought by two private investment firms for $1.67 billion in cash after merger talks with Loews Cineplex Entertainment fizzled out this year.
Kansas City, Mo.-based AMC said buyout firms J.P. Morgan Partners and Apollo Management offered $19.50 a share for the company, a 37% premium over AMC’s share price before news of the pending deal.
After the deal is completed, J.P. Morgan would hold about 50.1% of the company. Apollo, already an AMC investor, would hold about 49.9%.
The deal also includes assumption of $748 million in debt, minus $399 million in AMC’s cash and cash equivalents.
The deal is expected to close in the fourth quarter. AMC shares rose $1.94 to $19.10 on the American Stock Exchange.
The biggest entertainment stories
Get our big stories about Hollywood, film, television, music, arts, culture and more right in your inbox as soon as they publish.
You may occasionally receive promotional content from the Los Angeles Times.
