What’s new: Imax Corp., the Canadian big-screen cinema operator, has proposed a $124 million plan to buy out its Hong Kong-listed subsidiary that oversees its business in China.
New York-listed Imax offered to acquire the outstanding 96.3 million shares in Shanghai-headquartered Imax China Holding Inc. at HK$10 ($1.30) each in cash, which presents a premium of about 49% to their 30-day average closing price, the company said in a statement on Wednesday.
The transaction, which is expected to close later this year, will give Imax greater flexibility to pursue new opportunities and applications of Imax technology in China, the operator said. It will also be accretive to Imax earnings and cost savings, the statement said.
Imax China CEO Daniel Manwaring will remain in his role after the deal closes, the statement added. He will report to Imax CEO Richard Gelfond and oversee all local business functions including distribution, marketing and finance.
The background: The buyout bid comes at a time when China’s film market is showing signs of a steady recovery post-pandemic while overall domestic consumption remained sluggish.
In the first half of 2023, the country’s box office takings surged 52.8% year-on-year to 26.3 billion yuan ($3.7 billion), largely driven by the popularity of historical suspense comedy “Full River Red,” science-fiction film “The Wandering Earth 2” and mystery thriller “Lost in the Stars,” according to data from Dengta, a movie industry information provider.
Imax China was established in 2011 as part of Imax’s expansion in the country, and went public in Hong Kong four years later. The first Imax cinema opened in China in 2007 and the number has grown to more than 770 today, the most of any market in the world.
Contact reporter Ding Yi (yiding@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)
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