Carmike Cinemas postpones special shareholder vote on $1.1 billion buyout by AMC once again

Carmike Cinemas, facing opposition from shareholders over the purchase of the company by AMC Entertainment Holdings, again has put a special vote to approve or disapprove the sale on hold.

The special meeting, scheduled Friday in Atlanta, has now been pushed to July 25. The company reiterated that those permitted to vote on the acquisition by AMC, valued at $1.1 billion, is for those who owned shares of its common stock on May 18.

Columbus-based Carmike, which employs about 150 at its downtown headquarters, said the delay was due to “ongoing discussions” between it and Leawood, Kan.-based AMC. Leawood is a suburb of Kansas City.

“There can be no assurances regarding the outcome of any discussions between Carmike and AMC regarding the previously announced merger agreement,” Carmike said.

(Shareholder: AMC’s buyout of Europe theater chain shows Carmike deal ‘fatally flawed’)

(Carmike CEO ‘melancholy’ over $1.1 billion deal with AMC that will be ‘very painful’ for some employees)

(AMC to purchase Carmike Cinemas in $1.1 billion deal)

(AMC chief executive says buyout of Carmike now faces ‘considerable risk’)

This is the second time the Columbus movie theater chain has postponed the special vote, the first being on June 30. AMC Entertainment has not commented on the latest delay, although that firm’s President and Chief Executive Officer Adam Aron on Tuesday said the deal remains “at considerable risk” as some Carmike shareholders continue to oppose the $30 per share offer from AMC.

New York-based investment firm Mittleman Brothers has been the most vocal opponent, saying it believes a fair value for Carmike is at least $40 per share, if not higher.

“As per our statement two weeks back, some Carmike shareholders have an unrealistic view as to Carmike’s value to AMC, and their resulting price expectations are simply beyond what AMC believes is prudent to pay,” Aron said Tuesday in a statement. “We have said all along that AMC is a disciplined buyer, and that very much continues to be the case. We intend to continue to work this week with Carmike to see if the AMC/Carmike transaction can be saved, but we again note that the economics of a transaction get marginal very quickly for AMC above the $30 deal price.”

AMC on Tuesday also announced an agreement to purchase London-based theater company Odeon & UCI Cinemas Group, the largest motion-picture exhibitor in Europe, in a $1.2 billion deal. That alone would make AMC the largest theater operator in the world, something the Kansas company — owned by a Chinese conglomerate — covets and has mentioned as a goal with the Carmike acquisition.

This story was originally published July 15, 2016 at 10:14 AM with the headline "Carmike Cinemas postpones special shareholder vote on $$1.1 billion buyout by AMC once again."