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IMAX’s buyout proposal of China unit falls through

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IMAX China said on Tuesday that its shareholders have rejected a proposal of its U.S.-based parent to buy the remaining stake in the Hong Kong-listed company for about $124 million.

IMAX, which currently owns 71.6 per cent of its Chinese subsidiary, had offered to buy IMAX China at HK$10 ($1.28) per share in July, a 49 per cent premium to the 30-day average closing price at the time.

The remaining 28.4 per cent 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 per cent of the voting rights of shareholders were cast to approve the scheme and more than 10 per cent 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The listing of IMAX China’s shares will not be withdrawn, the company said in a statement.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)

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