IMAX’s buyout proposal of China unit falls through

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

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The listing of IMAX China’s shares will not be withdrawn, the company said in a statement.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

(Reporting by Upasana Singh in Bengaluru; Editing by Varun H K and Shailesh Kuber)