AMC Theatres to Sell Cinemas in Baltics for $77 Million to Bolster Liquidity

Adam Aron - Getty - H 2020
Amy Sussman/FilmMagic

"We continue to be encouraged by attendance levels at theaters that have reopened in Europe, where essentially all theaters are open, and in the U.S., where almost 300 theaters are currently open for business," AMC CEO and president Adam Aron also says.

AMC Theatres said on Monday that it has signed a definitive agreement to sell nine cinema locations in the Baltic region for €65 million, or about $77 million, to reduce its debt and strengthen its liquidity.

Up Invest, the owner of a Baltics cinema group, will acquire all nine venues for what AMC called "an attractive valuation."

"This transaction marks yet another bold and decisive action taken, on the heels of our capital raising in April and debt restructuring and capital raising in July, to bolster our liquidity and strengthen our balance sheet at a transaction multiple that underscores the inherent value of our theatre portfolio and resilience of our business," said AMC CEO and president Adam Aron. "We continue to be encouraged by attendance levels at theaters that have reopened in Europe, where essentially all theaters are open, and in the U.S., where almost 300 theaters are currently open for business."

He added: "Growing consumer confidence in our cleaning and safety protocols continues to generate increased attendance and food and beverage spend, and we look forward to offering a full slate of new and entertaining film product to further drive attendance over the remainder of 2020."

The company had acquired cinemas in the Baltic countries of Latvia, Lithuania, and Estonia as part of a 2017 deal for Nordic Cinema Group.

The sale unveiled on Monday calls for AMC to receive approximately half of the proceeds from the deal upon signing, with the balance due upon closing in each country "after antitrust resolution in the coming months."