PE investors CMC Capital, FountainVest partially exit IMAX China
Thursday, March 24, 2016
(DealStreetAsia by Liz Lee) – Private equity investors CMC Capital Partners and FountainVest Partners have sold 20 million pre-initial public offering (IPO) shares in IMAX China, ahead of the expiration of their lock-up period.
The returns on the divestment were not disclosed.
IMAX Corporation and IMAX China Holding, Inc announced on Wednesday that IMAX China has been informed by the lead underwriter for the latter’s IPO, Morgan Stanley Asia Limited, that its two lead private equity investors, have extended their lock-up for three additional months from April 8.
In exchange for entering into the new lock-up, the underwriters agreed to allow CMC and FountainVest to sell 20 million shares in advance of the previously negotiated expiration date of their initial lock-up of April 8, 2016.
The parties believe it will ensure a more efficient and orderly trading of shares in IMAX China on the Hong Kong Stock Exchange once the lock-up expires with respect to certain other investors on April 8.
CMC and FountainVest remain strategic investors in IMAX China and CMC will continue to partner with IMAX China in the previously-announced IMAX China Film Fund, the announcement on the Hong Kong Stock Exchange said.
“We were pleased to hear about this agreement because we believe that it will ensure an orderly transition of shares into the market and minimize potential volatility in the market for IMAX China shares around the expiration of the lock-up on April 8,” chairman of IMAX China and CEO of IMAX Corporation, Richard L. Gelfond said.
