May. 21, 2012 (China Knowledge) - Dalian Wanda Group Co Ltd, one of the few non-listed property giants in China
, has inked an agreement to acquire AMC Entertainment Holdings Inc, a U.S.-based movie exhibitor, at a consideration of US$2.6 billion, including debts.
As part of the deal, Wanda intends to spend an additional US$500 million on reducing debts and making improvements to AMC theaters.
Wang Jianlin, Chairman and President of Wanda, said, the acquisition would make Wanda a truly global cinema owner, adding that the company has invested over US$1.6 billion in cultural and entertainment activities since 2005.
AMC currently operates 346 multiplex theatres mostly located in North America with a total of 5,034 screens, including 2,336 3-D screens and 128 IMAX screens, making it the world's largest operator of IMAX screens.
The portfolio of Wanda, China
's largest theater chain, include 86 theatres and a total of 730 screens.
Sales of Chinese box office for 2011 increased by 35% to US$2 billion, making China
the global third-biggest market after the U.S. and Japan, according to statistics.
Dalian Wanda Group, which focuses on five major sectors, including commercial properties, luxury hotels, tourism investment, department stores and cultural businesses, reaped US$16.7 billion in revenue last year, sources reported.