Imax proposes to buy out China unit to fuel growth

Imax Corp. (IMAX) shares rose in the extended session Wednesday after the movie company said it proposed to acquire its Hong Kong-listed unit Imax China Holding Inc. for about $124 million in cash. Imax shares rose 2% after hours, following a 0.7% decline to close the regular session at $17.08. After acquiring all 96.3 million shares, Imax China would become a fully owned unit of Imax. "The public listing of Imax China raised capital to help fuel a period of tremendous growth for Imax in China, and this transaction has the potential to usher in a new era of expansion for our brand and technology in this thriving market for entertainment," said Imax Chief Executive Rich Gelfond in a statement. Since the first Imax location opened in China in 2007, the number has grown to more than 770, more locations than any other world market, the company said.

-Wallace Witkowski

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07-12-23 1825ET

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