Carmike Cinemas again postpones vote on sale to AMC Entertainment Holdings

Carmike Cinemas has postponed a shareholder vote on its proposed $1.1 billion sale to Leawood-based AMC Entertainment Holdings for a second time to allow for more talks on a deal that would combine two of the largest U.S. theater chains.

The buyout faces opposition from Carmike’s largest shareholders, who say the price is too low.

The vote, which had been set for Friday, has been rescheduled for July 25, Carmike said in a statement. The delay gives AMC more time to decide whether to raise its bid for the Columbus, Ga.-based chain or walk away.

AMC, controlled by Wang Jianlin, China’s second-richest man, is trying to acquire Carmike for $30 a share in a deal that would make the company the largest U.S. movie exhibitor. AMC is No. 2 behind Regal Entertainment Group.

AMC declined to comment Friday on the vote postponement.

Earlier this week, AMC agreed to acquire U.K. cinema chain Odeon & UCI Cinemas Group for $1.2 billion but said it was still willing to save the Carmike transaction if it could reach acceptable terms. Acquiring Odeon would make AMC the largest chain in the world.

Carmike’s two largest shareholders — Mittleman Brothers LLC and Driehaus Capital Management LLC — oppose the deal. Together they own about 20 percent of the theater chain, according to data compiled by Bloomberg.

AMC chief executive Adam Aron said this week that he is unwilling to pay the $40 a share sought by some investors.

The investors were joined by two shareholder advisory firms, Glass Lewis & Co. and Institutional Shareholder Services, which came out against the deal on June 17. They also said the offer undervalued Carmike.

This story was originally published July 15, 2016 at 11:08 AM with the headline "Carmike Cinemas again postpones vote on sale to AMC Entertainment Holdings."