Carmike Worth Much More To AMC Than Current Deal, Driehaus Capital Says

Carmike Cinemas, Inc. CKEC is worth between $43.50 and $47.25 per share, higher than the $30 price of AMC Entertainment Holdings Inc AMC, according to a press release issued by Driehaus Capital Management.

AMC agreed to buy Carmike Cinemas for $30.00 a share in cash. The transaction is valued at about $1.1 billion, including Carmike's debt. Driehaus Capital's estimated price implies a premium of 45 – 57.5 percent premium over AMC's $30 deal price.

Related Link: The Market Believes The AMC Theaters-Carmike Merger Will Go Through

"AMC Entertainment Holding's (AMC) prospective purchase of Carmike Cinemas, Inc. (CKEC) is a unique opportunity for AMC to gain substantial scale and accrue meaningful strategic benefits from a highly complementary asset," Driehaus Capital said in a press release.

"But despite the logic of the transaction, the value it creates does not appear to be shared equitably."

Chicago-based Driehaus Capital, which owns 1.80 million shares of Carmike Cinemas, has $8.1 billion in assets under management as of Feb.29, 2016.

Shares of Carmike Cinemas shares were up 1 percent at $30.42, while AMC shares fell 0.5 percent at $27.82.