Carmike Again Delays Shareholder Vote on AMC's $1.1 Billion Buyout
The theater chain cited "ongoing discussions" with AMC, which has balked at sweetening its $30 per share offer.
Carmike Cinemas has delayed for a second time its shareholder vote on a $1.1 billion merger deal with AMC Entertainment.
The theater chain said late Thursday that the vote on the proposed sale is now scheduled to take place July 25, after earlier being pushed from June 30 to July 15. Carmike in a statement cited "ongoing discussions" between itself and AMC for the second postponement.
By combining its 5,426 screens with Carmike's 2,954 screens, Chinese-owned AMC will have more than 600 theater locations in 45 states across the country should the sale go ahead. But concern by major shareholders that AMC's $30 per share offer for Carmike isn't rich enough has prompted shareholders to postpone any eventual vote.
"There can be no assurances regarding the outcome of any discussions between Carmike and AMC regarding the previously announced merger agreement," Carmike said in its statement, underlining how the transaction is at risk and may be abandoned.
AMC head Adam Aron on June 30 warned his company was a "disciplined" buyer unlikely to be moved by calls to raise the deal price tag. "We note that the financial metrics surrounding the Carmike acquisition get marginal very quickly above the $30.00 deal price. Accordingly, we are fully prepared to see the Carmike transaction pass by the wayside," the AMC chief added.