Chinese conglomerate Dalian Wanda Group Corp. Ltd. is considering reducing its ownership stake in AMC Entertainment Holdings Inc., Reuters reported Sept. 5, citing sources familiar with the matter.
The news comes amid pressure on the company from Chinese regulators to shed overseas properties.
Dalian Wanda is reportedly exploring a deal pursuant to which AMC would borrow hundreds of millions of dollars through a convertible bond, and then use the money to buy back some of Dalian Wanda's 60% stake. Dalian Wanda, which controls AMC though its ownership of class B shares, plans to retain control after any deal, sources added.
Private equity firms, including Silver Lake Partners and Apollo Global Management LLC, are reportedly discussing a debt investment with the cinema operator.