Art and ExperienceAMC Entertainment is working on an initial public offering in London for European exhibition chain Odeon, according to a report by Reuters on Thursday.

Citing three sources familiar with the matter, Reuters said AMC was working with investment bank Citi on the IPO, which could see Odeon spun off at a value of more than $2 billion.

“It has not escaped our notice that even though European public markets value movie theaters at double-digit EBITDA (earnings before tax, interest, depreciation and amortization) multiples, we are not seeing such valuations for our European assets at these levels when they are buried within AMC,” AMC boss Adam Aron said last November.

The company has also previously said it was considering an Odeon IPO by mid-2019. It would include Nordic Cinema, which operates throughout the Nordics and Baltics and which AMC bought in 2017.

AMC is controlled by Dalian Wanda, which in January reported an 11% decline in annual revenues but said its entertainment businesses, including AMC, are growing. In March, Lincoln Zhang, non-executive chairman of AMC Entertainment, stepped down.

Source: Variety