IMAX is selling a 20% stake in its China operations to a investment firm, CMC Capital Partners. This will make the way for a public offering a $80 million dollar deal. CMC will be moving forward with a public offering of shares of the China operation, this will be happening over the next five years.
IMAX explained that on Tuesday that the investment by CMC Capital Partners would be receved in two installments one this year and one the year following, Variety reported.
Imax Corp. CEO Richard L. Gelfond spoke about this new business transition. "China is an enormously complex market in which we have accomplished quite a bit over the last 15 years.At this juncture, it makes sense to bring in Chinese investors to help us better address local market dynamics and further optimize our business in China, including both our core theatre business as well as new business initiatives such as the home theatre joint venture we announced last year with TCL. We believe Ruigang Li and CMC, as well as FountainVest, are ideal partners whose status, leadership and expertise will be invaluable in helping us accomplish these goals," said Gelfond.
Wall Street Journal added that this deal will be a major move in paving the way for an expansion of the film industry in China. This will also result in a public listing.