AMC Entertainment (AMC) Transaction Likely Repesents Less Than 10% Of Outstanding Shares - Imperial

Imperial Capital analyst, David Miller, reiterated his Outperform rating on shares of AMC Entertainment (NYSE: AMC) Reuters reported that the Dalian Wanda Group, 58.5% owner of AMC, was “exploring” a transaction to sell a portion of its stake via a convertible bond sponsored through private equity firms.

In effect, AMC is buying back its stake acting as middleman.The analyst stated "Since the situation is fluid, terms of the transaction have not yet been announced and we do not know at this point whether Wanda’s intention is to sell all of its 58.5% stake, or just a portion. However, the article went on to state that Wanda “aims to retain control after any deal,” implying, at least on the surface, that the stake sold could be around 8.0%, or 10.2mn shares".

No change to the price target of $23.

For an analyst ratings summary and ratings history on AMC Entertainment click here. For more ratings news on AMC Entertainment click here.

Shares of AMC Entertainment closed at $19.30 yesterday.

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