Market Overview

Is Regal Entertainment The Most Likely Buyer For AMC's Divestitures?

Is Regal Entertainment The Most Likely Buyer For AMC's Divestitures?

Loop Capital’s David Miller said he would not be surprised to see if Regal Entertainment Group (NYSE: RGC) bulk buys theaters that AMC Entertainment Holdings Inc (NYSE: AMC) is seeking to divest to gain Department of Justice approval for its acquisition of Carmike Cinemas, Inc. (NASDAQ: CKEC).

Rumors Of Retail Sales/Buys

The DoJ seeks AMC to sell between 15–20 theaters in select areas in the South, including in Texas, and parts of the New Jersey/Philadelphia for the Carmike deal approval. AMC has also targeted a 60-day window for selling those assets, which was set on December 20.

“Assuming we are correct and RGC takes a hard look, RGC has somewhat of an advantage here in that AMC would be looking to unload these assets as quickly as possible without any rub with the DOJ, or negative press,” Miller wrote in a note.

Analyst Commentary

The analyst estimates Regal offering $50.0 million–$60 million, or roughly $375,000 per screen, firmly in the middle of industry averages. Also, Miller predicts Regal to pay the entire amount in cash, given $186.9 million on the balance sheet.

Meanwhile, Regal will be reporting its quarterly results on February 9 and Miller expects $820.5 million in revenues and $0.30/share in core, non-GAAP EPS versus consensus of $804.8 million/$0.26.

Miller has a Hold rating and $22 price target on Regal shares, which, at last check, were little changed at $22.45.

Latest Ratings for AMC

Dec 2019DowngradesNeutralUnderperform
Nov 2019MaintainsBuy
Oct 2019MaintainsOutperform

View More Analyst Ratings for AMC
View the Latest Analyst Ratings

Posted-In: Analyst Color M&A News Rumors Price Target Reiteration Retail Sales Analyst Ratings Best of Benzinga


Related Articles (CKEC + AMC)

View Comments and Join the Discussion!

Latest Ratings

VALB of A SecuritiesMaintains5.0
HALB of A SecuritiesMaintains28.0
PPLB of A SecuritiesMaintains35.0
PNWB of A SecuritiesMaintains97.0
IRBTB of A SecuritiesMaintains56.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at