IMAX buying out China unit
July 14, 2023
By Chris Forrester
Giant cinema screen operator IMAX is acquiring the remaining 28.5 per cent of its Shanghai-based subsidiary it does not already own. IMAX China is currently quoted on the Hong Kong stock exchange.
Imax has about 770 theatres in China.
Toronto-based IMAX will see it have 100 per cent control of its Chinese unit and paying $124 million (€110.3m) for the outstanding shares, and equal to HK$10 per share. The purchase price was a 49 per cent premium to the average share price over the previous 30 days.
The Chinese division will continue to operate from Shanghai.
“This deal is a win-win for Imax Corporation and Imax China, as it unlocks significant financial benefits for IMAX, while offering Imax China investors a meaningful premium to current market prices,” commented Richard Gelfond, CEO of IMAX.