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AMC to Be Bought for $1.67 Billion

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From Reuters

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%.

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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.

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