AMC Entertainment Holdings Inc’s (AMC) AMC Theatres is purchasing Carmike Cinemas, Inc. (CKEC)
AMC Theatres will be paying $30 per share in cash for Carmike Cinemas, which values the deal at $1.1 billion. This is a more than a 19% premium for CKEC stock as of its closing price on March 3, 2016.
The acquisition of Carmike Cinemas by AMC Theathers will result in the largest theater chain in the United States and the world. AMC has 5,426 screens and Carmike has 2,954 screen. The two companies have over 600 theaters across the US.
The deal between AMC Theatres and Carmike Cinemas has been approved by both companies’ Board of Directors. It will close by the end of the year following approval from CKEC shareholders and regulators.
AMC shares were up 2% and CKEC shares were up 16% as of Friday afternoon.
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