(Reuters) – Cinema operator IMAX said on Wednesday it has proposed to acquire full ownership of its Hong Kong-listed, China subsidiary in a deal valued at about $124 million.
The acquisition of IMAX China will improve the company’s operational flexibility and enable it to apply its technology in the Chinese market, IMAX said.
It has offered to buy shares of its Chinese subsidiary at HK$10 each, a 49% premium to their 30-day average closing price.
IMAX said the deal would boost its earnings and cut costs by about $2 million.
Daniel Manwaring will continue as IMAX China CEO after the completion of the deal and will oversee the local business functions including distribution, marketing and finance, the cinema operator said.
IMAX China, established in 2011, will remain headquartered in Shanghai with offices in Beijing.
($1 = 7.8254 Hong Kong dollars)
(Reporting by Akanksha Khushi in Bengaluru; Editing by Vinay Dwivedi)
