Chinese conglomerate Dalian Wanda Group Co. has exited its investment in American movie theatre operator AMC Entertainment Holdings Inc., as per a filing on Friday. The Wang Jianlin-led company, which acquired AMC in 2012 for $2.6bn, has slashed its stake to a mere 0.002% from 6.8% as on April 9. The move is part of Wanda’s move towards trimmings its investments outside China and comes at a time when theatre chains have been struggling on the back of pandemic-related lockdowns. Despite AMC’s struggling business, its stock has been one of the beneficiaries of the boom led by Reddit forum day traders, rising a massive 470% this year to $12.08. With the latest move, Wanda also announced that its film division and AMC will sign a long-term strategic cooperation agreement in order to safeguard their mutual benefits in global and Chinese mainland market.
Wanda’s 8.875% bonds due 2023 are trading at 93.25 yielding 13.15% currently while AMC’s 5% bonds due 2024 are trading at 101.31 yielding 3.9%.
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