2023-07-13 01:25:56 ET
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Imax ( NYSE: IMAX ) announced Wednesday that it plans to spend $124 million to get full ownership of its Hong Kong-listed Imax China.
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The move will further enhance the company's operational flexibility and enable it to apply its technology in the Chinese market, Imax said.
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Shares of Imax ( IMAX ) were up about 2% to $17.35 after-hours on Wednesday.
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Per the terms, Imax ( IMAX ) will buy shares of its Chinese subsidiary at HK$10 each which represents an approximate 49% premium to the 30-trading day average closing price.
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Upon approval of the offer, Imax ( IMAX ) will own 100% of Imax China.
- According to Imax ( IMAX ), the deal would boost its earnings and result in a $2 million cost reduction.
- The company will finance the deal by tapping its current cash reserves as well as possible debt financing.
- Pursuant to the deal, Daniel Manwaring will continue as Imax China CEO and will oversee the local business functions, including distribution, marketing, and finance, the cinema operator said.
- Imax China will remain headquartered in Shanghai, with offices in Beijing.
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Imax intends to acquire full ownership of IMAX China subsidiary for $124M