US: Carmike shareholders accept AMC Theatres’ $1.2 billion buyout

Shareholders of Carmike Cinemas accepted the $1.2 billion buyout from the Leawood-based parent company of AMC Theatres in a vote Tuesday morning.

Carmike said 72 percent of the company’s shares were voted in favor of the merge. AMC has said federal regulatory approval could come as early as next month.

Buying No. 4 chain Carmike would make AMC the nation’s largest with 8,218 screens, more than Regal Entertainment Group’s 7,310 screens. No. 3 Cinemark has 4,542 screens.

AMC also is growing overseas with a separate $1.2 billion deal to buy Europe’s largest theater chain Odeon & UCI Cinemas.

Shareholders of Carmike, which is fourth-largest in the United States, are to receive a combination of cash and shares of AMC Entertainment Holdings Inc. equal to $33.06 for each share of the Georgia-based theater chain that they own.

Regulators may require AMC to sell some theaters in the combination, but wholesale changes aren’t likely. The two chains operate largely in separate markets and appeal to different movie-going audiences, with AMC audiences favoring R-rated action flicks and Carmike viewers favoring family and faith-based films.

Still, AMC’s management had struggled to reach Carmike shareholder approval.

The original bid of $1.1 billion drew objections from large institutional investors with stakes in Carmike. AMC officials declared the deal was “at considerable risk.” Even Carmike’s CEO David Passman said he suffered “melancholy” over the deal.

Carmike’s shareholder vote was put off more than once since the deal originally was announced in March. AMC came back with a higher offer that quelled shareholder concerns ahead of the Tuesday vote.

Full content: The Kansas City

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