Thanks to Reddit’s traders, Wang Jianlin turns AMC stake from a drain into a US$675 million gain
- Wanda has now sold stake worth about US$1.5 billion
- Conglomerate acquired US cinema chain for US$700 million and US$1.9 billion in debt in 2012
As of Sunday, the company has sold stake worth a total of about US$1.5 billion and retained a 0.002 per cent holding, making a gain of about US$675 million including dividends since 2012, according to a Bloomberg analysis. It held a 6.8 per cent stake as of April 9, according to a stock exchange disclosure. The Chinese company has completely exited AMC’s board.
The AMC stake sale is the latest instance of Wanda offloading assets under pressure from Beijing, which wants it to pare back its overseas holdings and debt. The company was placed on a watch list by regulators in 2017 along with Anbang Group, Fosun Group and HNA Group. These privately controlled Chinese conglomerates had accumulated some of the world’s largest debts after snapping up overseas trophy assets, often at premium prices, and were facing significant debt maturities.
