Chinese group Wanda converts shares of AMC to allow the sale of its shares

The Chinese group Wanda Group, main shareholder of AMC Entertainment Holdings, has carried out a share conversion to allow the sale of its shares in the cinema operator, a target of the recent retail frenzy of WallStreetBets, AMC said in a swap file.

Wanda America Entertainment, a unit of Wanda, converted its Class B common stock of AMC into class A shares on February 1 “in order to permit the sale of its common stock,” AMC said in a filing with Securities and United States Exchange Commission on Feb 5

The filing did not give details of the amount of shares converted into Class A shares or indicate whether Wanda had sold any AMC shares. Wanda did not immediately return a request for comment.

AMC shares hit $ 17.25 on February 1, nearly quadrupling from the week before, as social media platforms such as Reddit fueled frenzied retail buys in heavily sold stocks such as AMC and GameStop.

AMC shares plunged 41% the next day and the stock is now down about 60% from its February 1 high.

The social media-fueled trading frenzy has calmed down in the past few days as U.S. financial regulators scrutinize GameStop’s stock spike due to Reddit.

Wanda, whose business ranges from real estate to entertainment, bought a controlling stake in AMC in 2012 for $ 2.6 billion, in what was then the largest overseas acquisition by a private Chinese company.

In 2018, the Chinese conglomerate formerly acquired by the acquisition reduced its exposure to the American cinema operator amid Beijing’s tighter regulatory control over the expansion of Chinese companies abroad.

Wanda still owns a controlling stake in AMC, according to the group’s website. Wanda also owns Hollywood producer Legendary Entertainment and Australian movie chain Hoyts Cinema, according to the website.