Next acquisition target for Wanda: Europe (Morning Whistle)

10 August 2012 16 h 35 min Comments Off

The early acquisition costs of Wanda Group Co. may shrink by more than half from $2.6 billion to less than $1 billion, as AMC Entertainment’s debtors are willing to continue holding the debts instead of demanding repayment of said liabilities, the 21st Century Business Herald reported.

Dalian Wanda Group Co Ltd, the operator of China’s largest movie theater chain by box office revenue, said its acquisition of AMC Entertainment Holdings Inc will be 100 percent self-funded, without any bank loan. On the other hand, the $2.21 billion debt of AMC will undoubtedly be a heavyburden for Wanda.

According to the report, an industry insider said the overseas acquisition of Wanda is continuing. The China’s largest investor in cultural and entertainment activities is currently targeting European markets, after some intentionality negotiations.

Wanda, also a real estate giant in China, announced Wednesday that it has received regulatory approvals for its $2.6 billion planned acquisition of AMC Entertainment, the second largest theater chain in the U.S., thus clearing the way for it to become the world’s biggest cinema owner.

Wanda, based in Dalian, northeast China, owns 86 theaters in China with 730 screens. It also has interests in production and distribution. Annual revenues are $16.7 billion, while it controls $35 billion in assets.

The deal marks the largest investment to date by a Chinese company in the U.S. entertainment industry and gives Wanda a foothold in this country’s movie theater business. Wanda and AMC expect to complete the transaction at the end of August.

Source: Morning Whistle (10/08/2012)

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