AMC Entertainment Holdings Inc. sweetened its offer to buy Carmike Cinemas Inc. by about 10 percent to $1.2 billion in cash and stock after some shareholders spurned an earlier bid.
Carmike shareholders will get the choice of receiving either $33.06 in cash or 1.0819 shares of AMC’s Class A common stock, Leawood, Kan.-based AMC said in a statement today. The deal also includes the assumption of Carmike’s net debt.
The companies agreed in March to a $30-a-share cash deal that would create the world’s largest cinema chain and extend Chinese influence in the movie industry. Chinese billionaire Wang Jianlin owns a controlling interest in the Leawood cinema chain.
AMC said the amended merger agreement is a “best and final” offer, representing a premium of about 32 percent over Carmike’s stock price on March 3 – the last date prior to the announcement of the company’s original transaction.
AMC has been trying to acquire Carmike despite opposition from Carmike’s largest stockholders, who said the original price is too low. The company agreed earlier this month to acquire U.K. cinema chain Odeon & UCI Cinemas Group for $1.2 billion, but said it was still willing to save the Carmike transaction if it could reach acceptable terms.
Read more: Bloomberg