People walk outside the newly embarked AMC 34th Street 14 cinema, as the city continues to reopen Phase 4 after restrictions imposed to slow the spread of the coronavirus on September 4, 2020 in New York City.
Noam Galai | Getty Images
China’s Wanda Group, the main shareholder of AMC Entertainment Holdings, has carried out a share conversion to allow the sale of its shares in the cinema operator, a target of the recent retail frenzy of WallStreetBets, AMC said in an exchange document.
Wanda America Entertainment, a unit of Wanda, converted its AMC Class B common shares into Class A shares on February 1 “to allow the sale of its common shares,” AMC said in the document to the US Securities and Exchange Commission. United States on February 5.
The order did not provide details on the number of shares converted into Class A shares or whether Wanda sold any AMC shares. Wanda did not immediately return a request for comment.
AMC’s stock reached $ 17.25 on February 1, almost quadrupling from the previous week, as social media platforms like Reddit fueled frantic retail purchases in heavily sold stocks like AMC and GameStop.
AMC’s shares plunged 41% the next day and are now about 60% below the February 1 peak.
The trading frenzy fueled by social media has cooled in recent days, as U.S. financial regulators examined the increase in GameStop shares driven by Reddit.
Wanda, whose businesses range from real estate to entertainment, bought a majority stake in AMC in 2012 for $ 2.6 billion, in what was then the largest acquisition abroad by a privately held Chinese company.
In 2018, the once-acquisitive Chinese conglomerate reduced its exposure to the U.S. cinema operator amid Beijing’s tighter regulatory scrutiny over the expansion of Chinese companies abroad.
Wanda still holds control of AMC, according to the group’s website. Wanda also owns Hollywood production company Legendary Entertainment and Australian film chain Hoyts Cinema, the website said.