7:24 AM PST 3/12/2021
in
Georg Szalai
,
The Chinese conglomerate had a 9.8 percent stake in the exhibition giant on March 3.
It’s official: the Chinese conglomerate Wanda Group has given up its majority stake in the movie giant AMC Entertainment, doing business like AMC Theaters.
AMC in its annual report, filed Friday with the Securities and Exchange Commission, said that Wanda reduced its stake to 23.08 percent of the company’s outstanding common shares and 47.37 percent of the combined voting power of the common shares on December 31st. cut its property to raise its economic and voting interest to 9.8% on March 3.
On February 1, 2021, Wanda exercised the right to convert its Class B common shares, each share with three votes, into regular Class A common shares, which have one vote per share.
“Even after the conversion, Wanda may have significant influence over our management and corporate affairs, due to his representation on the board of directors and his 9.8 percent shareholding on March 3, 2021, based on our records and information of Wanda, “Friday’s regulatory filing said.
Previous regulatory records showed that Wanda held approximately 58.8 percent of the voting power of AMC’s shares, despite having less than 50 percent of the company’s economic stake. In a June filing, AMC said that Wanda at that time owned 51,769,784 Class B common shares and no Class A shares.
Wanda has owned control of AMC since 2012, when he bought majority control of the exhibition giant for $ 2.6 billion, which at the time was the largest international acquisition ever made by a Chinese private company. The Beijing-based company reduced its stake in AMC in 2018 through an agreement with private equity firm Silver Lake, but retained control of the theater network through the double-share structure.