Chinese billionaire exits AMC, reversing global expansion

[NEW YORK] Dalian Wanda Group has almost completely exited its investment in AMC Entertainment Holdings, marking the latest retreat from overseas markets for the once-rapacious conglomerate founded by Chinese billionaire Wang Jianlin.

Wanda, which bought the theatre chain in 2012 for US$2.6 billion, cut its stake to just 0.002 per cent, according to a filing Friday. That compares with 6.8 per cent in an April 9 disclosure and more than a third of the shares in October.

Wanda has been trimming its position as the chain struggled with the pandemic, but also as the group contracts its investments outside of China. The company - spanning malls, films, sports and theme parks - was among Chinese conglomerates that accumulated some of the world's largest debts after snapping up overseas trophy assets, often at premium prices, and now faces significant debt maturities.

While AMC's business has been battered by lockdowns, the stock has surged 470 per cent this year to US$12.08, fuelled in part by day traders inspired by Reddit forums, enabling Wanda to recoup more of its investment.

Mr Wang's fortune though continues to take a pounding. Once Asia's richest person, he's now worth US$9.2 billion, down US$5.9 billion this year, according to the Bloomberg Billionaires Index.

BLOOMBERG