AMC To Acquire Carmike In Cash And Stock Deal Valued At Approx. $1.2 Bln

(RTTNews) - Carmike Cinemas, Inc. (CKEC) announced it has entered into an amended and restated merger agreement with AMC Theatres (AMC) pursuant to which AMC will acquire all outstanding shares of Carmike in cash and stock. For each outstanding share of Carmike common stock, Carmike's stockholders will have the option to elect to receive either $33.06 in cash or 1.0819 shares of AMC's Class A common stock, subject to a customary proration mechanism to achieve an aggregate consideration mix of 70% cash and 30% in shares of AMC stock. The revised offer represents an increase of 10.2% over AMC's original cash offer of $30 per share.

The deal is valued at approximately $1.2 billion, including the assumption of Carmike net indebtedness. The $1.2 billion transaction value consists of approximately $585 million paid in cash and $250 million in AMC's Class A common stock to be paid to Carmike stockholders, and AMC's assumption of Carmike's net debt.

The revised offer was approved by Boards of AMC and Carmike, respectively. The transaction is expected to be completed by the end of 2016.