Shares of IMAX China Holding Inc.(1970.HK) swung sharply in early trading after shareholders rejected a proposed $124 million takeover, ensuring the company's shares remain listed in Hong Kong.
Shares in the Shanghai-based company fell as much as 10 per cent at the open on Wednesday before recovering some of those losses by mid-morning. The stock was last down 3.1 percent at HK $7.75 (99 cents), trimming its gain for the year to 9.9 percent.
The company's parent, Canada-based IMAX Corp., in July offered HK $10 a share for all the shares it didn't own in the Chinese unit.
Tuesday, IMAX...
Shares of IMAX China Holding Inc.(1970.HK) swung sharply in early trading after shareholders rejected a proposed $124 million takeover, ensuring the company's shares remain listed in Hong Kong.
Shares in the Shanghai-based company fell as much as 10 per cent at the open on Wednesday before recovering some of those losses by mid-morning. The stock was last down 3.1 percent at HK $7.75 (99 cents), trimming its gain for the year to 9.9 percent.
The company's parent, Canada-based IMAX Corp., in July offered HK $10 a share for all the shares it didn't own in the Chinese unit.
On Tuesday, IMAX China shareholders voted against the offer by more than 10 per cent, reaching the threshold needed to reject the take-private offer. About 70 per cent of the votes were in favour.
Letko, Brosseau & Associates, the Canadian investment group that controls about 1.7 per cent of IMAX China's outstanding shares, said last month that the takeover proposal greatly undervalued the company and appeared "opportunistic" as it was recovering from the effects of the pandemic.