IMAX Corporation Responds To Results Of Shareholder Vote On IMAX China Privatization Transaction; Despite 70% Of Shareholders Voting "For", Proposed Transaction Does Not Meet The Necessary Threshold For Approval
Portfolio Pulse from Benzinga Newsdesk
IMAX Corporation's proposal to acquire the outstanding 96.3 million shares of IMAX China has been rejected by shareholders, despite 70% voting in favor. The votes against exceeded the 10% threshold required by Hong Kong law to defeat a privatization transaction. IMAX CEO Rich Gelfond stated that the company will explore other means of creating shareholder value, such as share repurchases of IMAX Corporation stock.
October 10, 2023 | 12:39 pm
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IMAX's proposal to acquire IMAX China's shares has been rejected. The company may explore other means of creating shareholder value, such as share repurchases.
The rejection of the acquisition proposal could negatively impact IMAX's stock in the short term as it indicates a lack of shareholder support for the company's strategic direction. However, the company's intention to explore other means of creating shareholder value, such as share repurchases, could potentially offset some of this negative impact.
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