IMAX's buyout proposal of China unit falls through (updated)

IMAX China Holding

10/10/2023 13:24

(Adds details on voting results and background of deal in
paragraphs 2 to 6)
       Oct 10 (Reuters) - IMAX China  1970.HK  said on Tuesday
that its shareholders have rejected a proposal of its U.S.-based
parent  IMAX.N  to buy the remaining stake in the Hong
Kong-listed company for about $124 million.
    IMAX, which currently owns 71.6% of its Chinese subsidiary,
had offered to buy IMAX China at HK$10 ($1.28) per share in
July, a 49% premium to the 30-day average closing price at the
time.
        The remaining 28.4% stake of IMAX China was valued at
about$98.7 million, as of the company's last closing price.
    The proposed purchase did not go through as less than 75% of
the voting rights of shareholders were cast to approve the
scheme and more than 10% of the votes were cast against the
resolution for the scheme's approval.
        The listing of IMAX China's shares will not be
withdrawn, the company said in a statement.
    IMAX had sought to take full control of its China unit to
improve the company's operational flexibility and apply its
technology in the Chinese market. 


($1 = 7.8197 Hong Kong dollars)

 (Reporting by Upasana Singh in Bengaluru; Editing by Varun H K
and Shailesh Kuber)
 ((Upasana.Singh@thomsonreuters.com;))