IMAX proposes to take full control of China unit in $124 mln deal

IMAX China Holding

13/07/2023 24:22

July 12 (Reuters) - Cinema operator IMAX  IMAX.N  said
on Wednesday it has proposed to acquire full ownership of its
Hong Kong-listed, China subsidiary in a deal valued at about
$124 million. 
    The acquisition of IMAX China will improve the company's
operational flexibility and enable it to apply its technology in
the Chinese market, IMAX said. 
    It has offered to buy shares of its Chinese subsidiary at
HK$10 each, a 49% premium to their 30-day average closing price.
    IMAX said the deal would boost its earnings and cut costs by
about $2 million. 
    Daniel Manwaring will continue as IMAX China CEO after the
completion of the deal and will oversee the local business
functions including distribution, marketing and finance, the
cinema operator said. 
    IMAX China, established in 2011, will remain headquartered
in Shanghai with offices in Beijing. 
       
    

($1 = 7.8254 Hong Kong dollars)

 (Reporting by Akanksha Khushi in Bengaluru
Editing by Vinay Dwivedi)
 ((Akanksha.Khushi@thomsonreuters.com;))