IMAX China to Resume Trading on July 13th After Final Controlling Shareholder Offers a Premium of Approximately 39.47% for Privatization
IMAX CHINA and the offeror IMAX jointly announced on July 13, 2023 that the offeror proposed to privatize the company in accordance with Article 86 of the Company Law through an agreement arrangement, and requested the board of directors to submit the proposal to the planned shareholders. Subject to the effectiveness of the plan, all planned shares will be cancelled, and each planned share will be exchanged for HKD 10.00 in cash. The shares held by IMAX (a wholly-owned subsidiary of the offeror) will not constitute part of the planned shares and will not be cancelled. After the plan becomes effective, IMAX and the offeror will respectively hold approximately 71.63% and 28.37% of the company's shares, and their listing status on the Stock Exchange of Hong Kong will be simultaneously cancelled. The offer price of HKD 10.00 represents a premium of approximately 39.47% over the closing price of HKD 7.1700 per share on July 10, 2023 (i.e., the last full trading day) on the Stock Exchange of Hong Kong. After the plan becomes effective, all planned shares will be cancelled, and the shares of the planned shares will no longer have the effect of ownership documents or certificates. The company will apply to the Stock Exchange for the cancellation of the listing status of the shares on the Stock Exchange in accordance with Rule 6.15 of the Listing Rules immediately after the plan becomes effective. It is reported that the offeror is a limited liability company registered and listed on the New York Stock Exchange (NYSE: IMAX) in Canada, and is the ultimate controlling shareholder of the company. The offeror is a world-class entertainment technology platform.
IMAX CHINA (01970) and the offeror IMAX jointly announced on July 13, 2023 that the offeror proposes to privatize the company in accordance with Article 86 of the Company Law through an agreement arrangement, and requests the board of directors to submit the proposal to the planned shareholders.
Subject to the effectiveness of the plan, all planned shares will be cancelled, and each planned share will be exchanged for HKD 10.00 in cash.
The shares held by IMAX (a wholly-owned subsidiary of the offeror) will not constitute part of the planned shares and will not be cancelled. After the plan becomes effective, IMAX and the offeror will respectively hold approximately 71.63% and 28.37% of the company's shares, and the listing status of the shares on the Stock Exchange of Hong Kong will be delisted simultaneously.
The offer price of HKD 10.00 represents a premium of approximately 39.47% over the closing price of HKD 7.1700 per share on the Stock Exchange of Hong Kong on July 10, 2023 (i.e., the last full trading day).
After the plan becomes effective, all planned shares will be cancelled, and the shares of the planned shares will no longer have the effect of ownership documents or certificates. The company will apply to the Stock Exchange of Hong Kong for the delisting of the shares from the Stock Exchange of Hong Kong in accordance with Rule 6.15 of the Listing Rules shortly after the plan becomes effective.
It is reported that the offeror is a limited liability company registered and listed on the New York Stock Exchange (NYSE: IMAX) and is the ultimate controlling shareholder of the company. The offeror is a world-class entertainment technology platform. Through its proprietary software, cinema system, patented intellectual property, and professional equipment, the offeror provides unique end-to-end solutions and creates high-quality, realistic content experiences.
As of the date of this announcement, the offeror indirectly holds equity in 243 million shares through its wholly-owned subsidiary IMAX, accounting for approximately 71.63% of the company's issued share capital.
In addition, the company has applied to the Stock Exchange of Hong Kong for the resumption of trading of the shares on July 13, 2023, starting from 9:00 am.