Wanda aims to reduce AMC stake: sources

Source:Reuters Published: 2018/9/6 20:33:41

Chinese billionaire Wang Jianlin's real estate-to-media conglomerate Dalian Wanda Group is exploring a deal to cut its stake in AMC Entertainment Holdings Inc, the world's largest cinema operator, people familiar with the matter said.

The move is the latest sign of how Wanda, like many of its Chinese peers, is under pressure from the country's regulators to reduce overseas holdings after embarking on a major acquisition spree in the US and Europe.

Wanda is exploring a deal in which AMC would borrow hundreds of millions of dollars through a convertible bond, and then use that money to buy back some of Wanda's 60 percent stake, the sources said on Wednesday. Wanda controls AMC though its ownership of Class B shares, and aims to retain control after any deal, the sources added.

Private equity firms, including Silver Lake Partners and Apollo Global Management LLC, are in talks with AMC about making the debt investment, the sources said.

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