Deals

Silver Lake Invests $600 Million in AMC With Wanda Retreating

Dalian Wanda will get most of $600 million investment
Private equity firm to buy AMC convertible notes in deal

A pedestrian views a movie poster hanging on display outside an AMC Entertainment Inc. theater in Santa Monica, California.
Photographer: Patrick T. Fallon/Bloomberg

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By Anousha Sakoui and Zachary Tracer

September 14, 2018 at 10:39 AM EDT

Updated on

September 14, 2018 at 3:08 PM EDT

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Dalian Wanda Group Co., the Chinese firm controlled by Wang Jianlin, is scaling back its bet on AMC Entertainment Holdings Inc. as part of a push by the billionaire to shore up finances.

The largest U.S. movie-theater chain will receive a $600 million investment from private equity firm Silver Lake, letting it buy back stock owned by Wanda and pay a dividend. Investors initially cheered the move, sending the shares up as much as 6 percent on Friday, though the rally evaporated amid concerns about AMC’s growing debt load.