How Will AMC Stock React to Odeon & UCI Cinemas Deal?

AMC Entertainment (AMC) is purchasing London-based cinema chain Odeon & UCI.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- AMC Entertainment (AMC) - Get Report  is in talks to acquire London-based cinema group Odeon & UCI.

The Leawood, KS-based cinema operator announced this morning that it would acquire the smaller chain for $1.21 billion. AMC would also assume $534 million in debt from Odeon & UCI.

After closing, AMC will become the largest movie theater operator in the world and will hold a total of 627 theaters and over 7,600 screens in eight countries.

AMC hopes this deal will go smoother than recent attempts to acquire Carmike Cinemas (CKEC).

The $1.1 billion deal is at "considerable risk" according to AMC after Carmike adjourned a shareholder vote last week. AMC is still committed to saving the deal if possible.

Shares of AMC closed up 0.65% to $27.77 yesterday.

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and notable return on equity. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: AMC

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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