People walk out of the new AMC 34th Street 14 movie theater as the city continues phase 4 reopening following restrictions imposed to curb the spread of coronavirus on September 4, 2020 in New York City.
Noam Galai | Getty Images
Chinese group Wanda Group, a major shareholder in AMC Entertainment Holdings, conducted a stock conversion to allow the sale of its shares to the film operator, a target of WallStreetBets ’recent retail frenzy, AMC said in a stock market presentation.
Wanda America Entertainment, a unit of Wanda, converted its Class B common shares in AMC to Class A shares on Feb. 1 “to allow the sale of its common shares,” AMC told the Securities and Exchange Commission. and U.S. Stock Exchanges on February 5th.
No details were given at the presentation about the number of shares converted into Class A shares nor was it said whether Wanda had sold any AMC shares. Wanda did not immediately return any requests for comment.
Shares of AMC hit $ 17.25 on Feb. 1, nearly quadrupling from a week earlier, as social media platforms like Reddit fueled the frantic retail buying of very short stocks like AMC. and GameStop.
AMC shares fell 41% the next day and shares are now down about 60% from their February 1 high.
The trading frenzy traded on social media has cooled in recent days as U.S. financial regulators analyze GameStop’s Reddit-driven stock rise.
Wanda, whose business ranges from real estate to entertainment, bought a majority stake in AMC in 2012 for $ 2.6 billion, which was the largest overseas acquisition by a Chinese private company.
In 2018, once acquired Chinese conglomerate reduced its exposure to the US cinema operator amid tight regulatory control in Beijing over the expansion of Chinese companies abroad.
Wanda still has a controlling stake in AMC, according to the group’s website. Wanda also owns Hollywood producer Legendary Entertainment and Australian film chain Hoyts Cinema, according to the website.