CHICAGO, Aug. 4, 2016 /PRNewswire/ -- Driehaus
Capital Management, a Chicago-based investment adviser of funds that
beneficially own 2,430,578 shares of Carmike Cinemas, Inc. (NASDAQ:
CKEC), today issued the following statement:
August 4, 2016
On July 25, 2016, AMC
Entertainment Holdings Inc. ("AMC") revised its offer for Carmike
to $33.06 per share, composed of 70%
cash and 30% stock. While an improvement, we still firmly believe
that this revised offer, like the one that preceded it, undervalues
Carmike and does not equitably share the value created from the
prospective transaction.
We are confident that Carmike's current standalone value is
substantially in excess of the $33.06
per share offer. However, we are not as confident that it would be
one year from today given management's focus on selling the company
rather than growing it. While we have closely considered
alternatives to mitigate such concerns, we are also cognizant of
the high hurdle rate such an action must clear given its time
intensity and potential to disrupt the underlying business. This
hurdle rate was cleared at the initial $30.00 per share offer price—but, today, the
answer is not as clear-cut.
In this vein, despite its inequity we have decided to vote a
substantial majority of our shares in favor of the transaction.
Once again, we do believe that the deal is significantly
accretive, but simply inequitable in its distribution of the spoils
and unfair from a valuation perspective to Carmike's
shareholders—and because we firmly believe in the deal's accretive
potential, we began to establish a position in AMC's shares
following the July 25 announcement of
its revised proposal.
Sincerely,
K.C.
Nelson
|
Matthew
Schoenfeld
|
Portfolio Manager,
Alternative Strategies
|
Assistant Portfolio
Manager
|
Driehaus Capital
Management LLC
|
Driehaus Capital
Management LLC
|
About Driehaus Capital Management
Driehaus Capital
Management LLC is a privately-held, independent investment adviser
with $8.6 billion in assets under
management as of July 31, 2016. The
firm manages global, emerging markets and US growth equity, and
alternative investment strategies. Founded in 1982 by Richard H. Driehaus, the firm serves a diverse
institutional client base comprised of corporate and public
pensions, endowments, foundations, sub-advisory, financial advisors
and family offices, globally.
For more information, please visit www.driehaus.com.
This material is for general informational purposes only and is
not intended to be relied upon as investment advice. The opinions
expressed are those of Driehaus Capital Management LLC ("Driehaus")
as of August 4, 2016 and are subject
to change at any time due to changes in market or economic
conditions.
The information and opinions contained in this material are
derived from proprietary and non-proprietary sources deemed by
Driehaus to be reliable and are not necessarily all inclusive.
Driehaus does not guarantee the accuracy or completeness of this
information. There is no guarantee that any forecasts made will
come to pass. Reliance upon information in this material is at the
sole discretion of the reader.
Media Contact:
Bradley Dawson
Vice President, Marketing and Product Development
312.587.3844
bdawson@driehaus.com
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SOURCE Driehaus Capital Management