IMAX Corporation (NYSE:IMAX) entered into scheme of arrangement to acquire 28.366457% stake in IMAX China Holding, Inc. (SEHK:1970) from a group of shareholders for HKD 1 billion on July 12, 2023. As reported, IMAX Corporation will acquire 96.3 million shares in IMAX China for approximately HKD 10 per share in cash. Upon approval of the offer and the scheme of arrangement, IMAX Corporation will own 100% of IMAX China. IMAX Corporation intends to finance the transaction in full through its internal cash resources and/or external debt financing. The acquisition of IMAX China is subject to customary closing conditions, including the receipt of IMAX China shareholder, sanctioning of the privatization proposal by the Cayman Grand Court and other approvals. The offer has been approved by both IMAX Corporation and IMAX China's Boards of Directors. As on August 31, 2023, Jim ATHANASOPOULOS, Jiande CHEN, Mei-Hui (Jessie) CHOU, Ka Long Karen CHAN, Tseng Kai TSAO and Xueqing ZHANG, also entered into an irrevocable undertaking in favour of the IMAX Corporation. The transaction was reviewed and approved by the Independent Board Committee ("IBC") at the recommendation of the Independent Financial Advisor. The transaction is expected to close later in 2023. The transaction is expected to close by December 31, 2023. The transaction will be immediately earnings accretive. IMAX China has scheduled an Extraordinary Shareholders Meeting to approve the proposed transaction with IMAX for October 10, 2023. Morgan Stanley Asia Limited acted as financial advisor and Freshfields Bruckhaus Deringer LLP, Hong Kong acted as legal advisor to IMAX Corporation. Slaughter and May acted as financial advisor to Morgan Stanley Asia Limited. Somerley Capital Limited acted as Independent Financial Adviser to the Independent Board Committee.

IMAX Corporation (NYSE:IMAX) cancelled the acquisition of 28.366457% stake in IMAX China Holding, Inc. (SEHK:1970) from a group of shareholders on October 10, 2023.