Dalian Wanda’s AMC stake falls to less than 10 per cent after dilution, as tycoon Wang Jianlin’s ambition of assembling a global media-to-property flagship runs aground
- Dalian Wanda Group’s stake in the largest cinema chain in the United States drops to 9.8 per cent, from 23.1 per cent previously
- Wanda’s loss of control is ‘beneficial’, as the group does not need to take the responsibility for AMC’s liabilities and profit losses, a source said
Dalian Wanda Group’s stake in the largest cinema chain in the United States has been diluted to less than 10 per cent, dealing a significant blow to Chinese tycoon Wang Jianlin’s ambition of becoming a global entertainment mogul.
Wanda held 9.8 per cent of AMC Entertainment Holdings’ ordinary shares as of March, down from about 23 per cent at the end of 2020, according to AMC’s annual report filed with the US securities regulator on March 12.
“Although Wanda is no longer the controlling shareholder, it’s still the single largest shareholder,” a source close to the company told the South China Morning Post, declining to be named. “It’s beneficial for Wanda as it doesn’t need to take the responsibility of a controlling shareholder for AMC’s liabilities and losses.”
The dilution was confirmed during a March 10 earnings call by AMC’s chief executive Adam Aron, who added that Wanda retained two board seats at the theatre chain.
Still, Wanda owned around 23.1 per cent outstanding ordinary shares of AMC, and 47.4 per cent of the combined voting power at the end of December. The property-to-entertainment conglomerate exercised on February 1 its right to convert all outstanding Class B ordinary shares to Class A ordinary shares. As of March 3, Wanda held 44 million shares of Class A common stocks of AMC. The shares can be freely traded on the market now.
