Carmike Cinemas Inc fka CKEC

[Enterprising Investor]

Driehaus Capital Management to Vote in Favor of Revised Carmike Cinema Offer (8/4/16)

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
Portfolio Manager, Alternative Strategies

Matthew Schoenfeld
Assistant Portfolio Manager

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.

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