Imax proposes to buy out China unit to fuel growth

Imax Corp.
IMAX,
-0.70%
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.
1970,
+3.07%
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.