China's Dalian Wanda trims AMC exposure with Silver Lake deal
Sept 14 (Reuters) - AMC Entertainment Holdings Inc
said on Friday it bought back 24 million shares from its top
investor Dalian Wanda Group and issued $600 million worth of
convertible notes to private equity firm Silver Lake.
Earlier in September, Reuters reported Wanda was exploring a
deal to cut its stake in AMC, as the Chinese billionaire Wang
Jianlin's real estate-to-media conglomerate was under pressure
from the country's regulators to reduce overseas holdings.
After the transaction, Wanda now owns about 38 percent of
AMC shares, down from its previous majority stake of about 60
percent. As part of the deal, Silver Lake will get a seat on
AMC's board and a two-year right of first refusal on certain
future transfers of AMC's shares by Wanda.
Wanda acquired a majority stake in AMC in 2012 for $2.6
billion, in what was then the largest overseas acquisition by a
privately held Chinese company and Wanda's first foray into the
United States and Canada.
In 2017, Chinese regulators told banks to stop providing
funding to companies such as Wanda, HNA Group Co Ltd
and Anbang Insurance Group Co Ltd for overseas
acquisitions, amid concerns over financial overstretching.
(Reporting by Munsif Vengattil in Bengaluru; Editing by Shounak
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