By Jiahui Huang
IMAX China Holding shares were volatile in morning trading after shareholders rejected a $124 million buyout proposal, ensuring shares will remain listed in Hong Kong.
The Shanghai-based company’s shares fell 10% at the start of trading Wednesday before recovering some of the losses by midmorning. They were last 3.1% lower at 7.75 Hong Kong dollars (99 U.S. cents), trimming gains this year to 9.9%.
The company’s parent, Canada-based IMAX Corp., in July offered to buy all shares that it didn’t hold in its Chinese unit for HK$10 each.
Shareholders of the Chinese unit voted down the offer on Tuesday, with votes against the deal hitting more than 10%, the required threshold to defeat a privatization bid. About 70% of the vote was in favor of the bid.
Canadian investment group Letko, Brosseau & Associates, which controls about 1.7% of IMAX China’s outstanding shares, said last month that the bid significantly undervalued the company and appeared “opportunistic,” coming at a time when the company was recovering from the pandemic.
Write to Jiahui Huang at [email protected]
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