(Yicai Global) May 24 -- Dalian Wanda Group withdrew from the board of directors of world’s largest cinema chain AMC Entertainment Holdings and now only retains a minority stake, the Chinese real estate company said on its website yesterday. It recovered a cumulative USD1.5 billion, with an investment return of over 100 percent.

Wanda bought 100 percent of AMC for USD2.6 billion in 2012 and pledged to invest up to USD500 million in operating capital after the merger. But Wanda said its actual cash investment in AMC was only USD700 million, and the USD500 million equipment renovation cost was settled through AMC’s listing.

Based on the USD1.5 billion recovered, Wanda’s investment gain in AMC has more than doubled, according to The Paper.

In line with its “domestic focus” strategy, Wanda gradually gave up its controlling stake of AMC from 2018, it said in the statement.

However, Wanda Film, the main body of the company’s film business, will pen a long-term cooperation agreement with AMC to carry out regular exchanges and training.

Wanda, headquartered in northeast China’s coastal city of Dalian, said that it had so far exited all of its overseas investments with gains.

The cinema chain’s struggle to survive during the Covid-19 pandemic was one of the reasons for Wanda’s exit, an analyst told The Paper. The company also took the initiative to shrink its overseas investment since its sales of AMC shares started early in 2018.

Wanda has been shedding its overseas investment projects in recent years. It sold the One Beverly Hills project in Los Angeles for USD420 million in November 2018.

Wanda Sports Group inked a final stock purchase agreement to sell Ironman to US private company Advance for USD730 million in cash in March last year.

Wanda has now sold all of its overseas property projects. Its remaining overseas assets are Hoyts Cinemas, the second largest cinema in Australia, and US-based Legendary Pictures, according to public information.

Editor: Peter Thomas