Kansas City’s AMC plans to sell out, go private

Company's first-quarter earnings beat expectations

? The majority owner of AMC Entertainment Inc. is joining with a New York financial firm to buy control of the company for $2 billion and take it private, the nation’s second-largest movie theater company said Thursday.

Stockholders in Kansas City, Mo.-based AMC would receive $19.50 per share from Apollo Management LP, the company’s current majority owner, and J.P. Morgan Partners, the private equity arm of J.P. Morgan Chase & Co.

Trading in AMC shares was halted early Thursday while the deal was announced, but resumed later in the day. The stock closed up $1.94 at $19.10 in trading on the American Stock Exchange.

The deal’s offer would represent a 37 percent premium over the stock price of Monday, when word of the potential deal first leaked.

AMC also said Thursday its fiscal first-quarter earnings beat analyst expectations. The company said it earned $8.8 million, or 17 cents per share, in the period ended July 1, compared to $2.7 million, or 7 cents per share, in the same period last year. Analysts polled by Thomson First Call had expected earnings of 15 cents per share.

Revenue increased 4 percent to $489 million during the quarter, which includes the beginning of the all-important summer movie season. Officials said they saw a slight decline in attendance but made up for it with a 4.5 percent increase in ticket sales and a 3.6 percent increase in concession stand prices.