Carmike shareholders approved a deal on Tuesday to sell the theater chain to Wanda-owned AMC Entertainment for $1.2 billion, including debt, making it the world's biggest exhibitor.

The decision came eight months after AMC Entertainment initially proposed to acquire Carmike. More than 86 percent of the shares voted at the meeting were in favor of the merger, accounting for about 72 percent of Carmike's outstanding stock, the Variety reported.

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"This transaction creates an opportunity to deliver an even more compelling movie-going experience to more guests in many more locations across the country," David Passman, Carmike's CEO, said.

AMC was forced to sweeten its offer after several shareholders complained that the initial $30 per share offer was undervalued. As a result, the company increased its pre-share price of the cash and stock pact by 10 percent, according to the LA Times. AMC will pay $33.06 a share for Carmike and some AMC stock.  

Should the deal close, AMC will then become the biggest theater chain in the US and in the world with more than 600 cinemas in 271 locations. It is poised to surpass the Regal Entertainment Group, which currently reigns on the top spot with 565 locations, The Hollywood Reporter noted.

Meanwhile, Dalian Wanda, AMC's parent company, is also eyeing to acquire London-based Odeon & UCI Cinema Groups. The real estate conglomerate has recently been on a shopping spree as it also recently acquired Legendary Entertainment for $3.5 billion and Dick Clark Productions for $1 billion.

AMC's deal with Carmike is still subject for regulatory approval from the U.S. Department of Justice and is expected to be completed by the end of the year.

TagsCarmike Cinemas, AMC theaters, Dalian Wanda, theater chains, Regal Entertainment Group