Corporate News Blog - AMC Entertainment Sells National CineMedia
Research Desk Line-up: Eros Intl. Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 9, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for AMC Entertainment Holdings, Inc. (NYSE: AMC) ("AMC"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=AMC. The Company announced on October 02, 2017, that it has completed the sale of 2.8 million shares of National CineMedia, Inc. (NASDAQ: NCMI) ("NCM") common stock to an undisclosed American buyer for about $18.2 million, effective September 29, 2017, representing a price of $6.49 per share. The transaction according to the Company represents the remaining NCM shares required to be sold in 2017 by AMC under the consent decree with the US Department of Justice concerning AMC's acquisition of Carmike Cinemas Inc., in December 2016. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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The Announcement
AMC views this transaction to be consistent with the Company's previously announced plan to identify about $400 million non-strategic assets that could be monetized over the next 24 months. This NCM share sale, according to the Company, represents its fourth asset monetization announcement since it announced the plan on August 04, 2017. The Company views this block sale as a fulfillment of its obligation to the US Department of Justice to reduce to no more than 15% of its ownership stake in NCM by December 20, 2017.
AMC is currently the world's largest movie exhibition Company in the US, in Europe, and across the world with about 1,000 theatres and 11,000 screens across the globe. AMC operates one of the most productive theatres in the United States' top markets, holding the leading position in 22 of the 25 largest metropolitan areas of the country. This sale, according to the Company, would allow it to further enhance the liquidity position, strengthen the balance sheet through deleveraging, and execute the strategic capital allocation plan of buying back AMC's shares, all the while investing in the future growth through the renovation of its theatres.
Company Growth Prospects
AMC announced on September 26, 2017, that along with Dreamscape Immersive, it would rapidly scale the development and expansion of Dreamscape, which is a location-based VR startup. As part of the three-pronged collaboration, AMC would be the leading investor in a $20 million Series B financing round. AMC committed $10 million in equity investment into Dreamscape Immersive and would finance up to six Dreamscape Immersive VR centers within AMC cinemas and standalone locations in North America and the UK over the next 18 months.
Dreamscape Immersive is currently in licensing conversations with leading studios and IP-holders. It completed the Series A funding in January 2017, where it offers untethered VR experiences with body-mapping technology that allows participants to enter into, explore, and interact within cinematic worlds, in a way that was never possible. The agreement with AMC would enable the audiences to actually step into and experience imaginative worlds previously available only through watching movies.
Last Close Stock Review
On Friday, October 06, 2017, the stock closed the trading session at $15.20, declining 5.30% from its previous closing price of $16.05. A total volume of 2.86 million shares have exchanged hands. AMC Entertainment's stock price surged 10.14% in the last one month. The stock has a dividend yield of 5.26% and currently has a market cap of $1.96 billion.
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