Regarding movies, Wang Jianlin has a goal in mind: Before 2020, Wanda will occupy 20% of the global film market.
In September 2012, Wanda Group spent US$2.6 billion to acquire 100% of AMC Entertainment Holdings (hereinafter referred to as 'AMC Entertainment'), the second largest cinema group in the US. Wanda also became the world's largest cinema operator. However, this is only the first step for Wang Jianlin to achieve his goal. In the following years, Wanda's 'speed of light' swallowed several film and television companies in the United States and Europe, including Legendary Pictures and Europe's largest cinema line.
When the acquisition of AMC Entertainment was first, a professor used a three-word long text to demonstrate that Wanda must fail, because there has never been a multinational cinema line in human history.
At the 2016 Wanda Annual Meeting, Wang Jianlin said: 'If you have never been there, it is impossible to have it. Then humans can't have a car, there can't be a plane, there won't be a five-star hotel! So some people put some The expert is called 'brick home', the brick 'brick'.
At that time, it seemed that Wang Jianlin was in a position to win. But now, the two sides are right and wrong, but they can't tell. After six years of high-profile acquisition of AMC Entertainment, Wanda Group may be withdrawing from AMC entertainment step by step.
AMC Entertainment Fundraising Repurchase Shares
Wanda Group holds shares or fell to 38%
On September 14, AMC Entertainment announced that it intends to issue $600 million of convertible bonds to Silver Lake, a technology private equity fund, of which approximately $420 million (approximately RMB 2.878 billion) will be raised. Repurchased approximately 24 million Class B common shares from Wanda Group at a price of US$17.50 per share.
AMC Entertainment announced on September 14 that AMC Entertainment raised funds to repurchase Wanda shares. In an open letter to the media, AMC Entertainment CEO and Chairman Adam Aron expressed his gratitude to Wanda Group for its long-term support and help: In 2012, Wanda Group acquired a majority stake in AMC Entertainment, and they also expect to maintain a substantial and supportive number of shares in the future.
He also said that Silver Lake and AMC Entertainment have synergistic values, and that the experience and experience of Silver Lake in technology and media can make AMC go further.
As part of the transaction, Silver Lake will assign a director to the AMC Entertainment Board. At the same time, with the help of Silver Lake, AMC Entertainment will also add an independent board with technical background and relevant qualifications to the board.
In 2012, Wanda Group announced a high-profile announcement of a merger agreement with AMC Entertainment. In addition to the M&A transaction amounting to US$2.6 billion, Wanda Group will also invest no more than US$500 million in operating funds for AMC Entertainment.
The deal was called 'snake swallow' at the time. According to Nanfang Daily, Wanda Group had the number one cinema line in Asia with 86 screens and 730 screens, but AMC Entertainment has a total of 346 theaters, totaling 5028 screens, are the world's largest IMAX and 3D screen operators.
The first earnings report after AMC Entertainment's listing in 2013 also showed that AMC Entertainment is an indirect wholly-owned subsidiary of Wanda Group. However, six years later,
At present, Wanda Group holds approximately 51.77 million Class B common shares of AMC Entertainment, and its shareholding ratio has dropped to approximately 50.01%. If the convertible bonds are fully converted into Class A common shares, the shareholding ratio of Wanda Group will be further reduced to approximately 38%.
AMC Entertainment related announcement Previously, Zhang Lin, Chairman of Wanda Films, served as Chairman and Director of AMC Entertainment. However, the chairman of AMC Entertainment has become CEO of Adam Aron. According to AMC Entertainment’s previous announcement, Zhang Lin’s resignation is required at 'Wanda Take on a new position.'
Under the expansion
AMC Entertainment's asset-liability ratio is nearly 80%
'Wanda can retire if there are five Adams. 'Wang Jianlin, chairman of Wanda Group, once laughed at the 2016 Wanda Group Annual Meeting.
In the realization of Wang Jianlin's 'small goal' to establish a global film channel, AMC Entertainment is indeed effective. In 2016 and 2017, AMC Entertainment successively acquired Odeon & UCI, Nordic and Kama Cinema ( Carmike) three European and American cinema companies.
However, the aftermath of the massive expansion has gradually emerged. Due to the substantial increase in operating expenses, AMC Entertainment still failed to make a profit in the 2017 fiscal year with revenue growth of nearly 60%. The unaudited net loss was as high as 487 million US dollars.
For reasons of loss, AMC Entertainment cited a number of reasons for the reduction in average fares, the rise in interest and rents, and the increase in trading and administrative expenses incurred in the acquisition of the three European and American cinemas.
According to the second quarter financial report released by AMC Entertainment,
The company turned losses into profit in the first half of this year. Unaudited net profit changed from a loss of US$168 million in the first half of last year to a profit of US$39.9 million. However, as of June 30 this year, AMC Entertainment’s total liabilities remained as high as US$7.562 billion. The debt ratio is also nearly 80%.
As of June 30 this year, AMC Entertainment’s total liabilities amounted to US$7.562 billion.