SHANGHAI (Reuters) – Wanda Group of China, the majority shareholder in AMC Entertainment Holdings Ltd, has made a conversion of shares to allow the sale of its shares to the cinema operator, a target of the recent WallStreetBets retail frenzy, AMC said in a statement exchange file.
Wanda America Entertainment Inc., a Wanda unit, converted its common Class B shares in AMC to Class A shares on Feb. 1 “to allow the sale of its common shares,” AMC said in its filing with the Securities and Exchange Commission. from the United States. on February 5th.
The filing did not provide details on the amount of shares converted into Class A shares, nor did it say whether Wanda sold shares to AMC. Wanda did not immediately return a request for comment.
AMC shares reached $ 17.25 on February 1, almost four times a week earlier, as social media platforms such as Reddit fueled the frantic retail buying of short-circuit stocks such as AMC and GameStop.
AMC shares fell 41% the next day, and shares have now fallen about 60% from the February 1 high.
Social media-fueled trading frenzy has cooled in recent days as US financial regulators examine GameStop’s Reddit-based stock growth.
Wanda, whose business ranges from real estate to entertainment, bought a majority stake in AMC in 2012 for $ 2.6 billion, in what was then the largest overseas acquisition of a Chinese private company.
In 2018, the Chinese conglomerate, once acquired, reduced its exposure to the US film operator amid stricter regulatory control by Beijing over the expansion of Chinese companies abroad.
Wanda still holds a controlling stake in AMC, according to the group’s website. Wanda also owns Hollywood producer Legendary Entertainment and Australian film chain Hoyts Cinema, the website said.
Reporting by Samuel Shen and Brenda Goh; edited by Richard Pullin