
Rich Gelfond, the boss of giant-screen exhibitor Imax, saw a 35 percent decline in his compensation for 2012. That brought his pay to $3.6 million. The decline was in contrast to the increased pay for the boss of largest U.S. exhibitor Regal.
- Share this article on Facebook
- Share this article on Twitter
- Share this article on Email
- Show additional share options
- Share this article on Print
- Share this article on Comment
- Share this article on Whatsapp
- Share this article on Linkedin
- Share this article on Reddit
- Share this article on Pinit
- Share this article on Tumblr
TORONTO – Imax has sold a 20 percent stake in its expanding China business for $80 million to CMC Capital Partners and FountainVest Partners, a China-focused private equity firm.
The investment, to be paid in two tranches, is in Imax China Holding Inc., the giant-screen exhibitor said Tuesday.
PHOTOS: Johnny Depp’s First Trip to China
“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,” Imax CEO Richard Gelfond said in a statement.
Imax in a SEC 8K filing on Tuesday indicated it will issue 337,500 common C shares in Imax China with a value of $0.01 each for a combined value of $40 million on April 8, 2014 to its new strategic investors, and then do a second $40 million share issue a year later on April 8, 2015.
Imax China will remain a subsidiary of Toronto-based Imax Corp., and will have a nine-member board of directors comprising six Imax Corp. executives, one representative each from CMC Capital Partners and FountainVest Partners, and one independent member to be nominated by the entire board.
Ushering in Chinese ownership of its Chinese business could see Imax complete an eventual IPO of Imax China.
“We are strategically aligned with these Chinese investors to grow the business with the goal of taking Imax China public in China within five years,” Gelfond told analysts during a morning call.
The eventual IPO would look to raise between $900 million and $1 billion in China for Imax’s local business.
To get there, Imax will need to continue expanding its screen count in China, and screening tentpole Hollywood movies and Chinese titles.
Gelfond told the analysts that introducing local Chinese ownership would better allow Imax to navigate local regulatory and market waters to achieve an IPO and get into subsidiary businesses in China.
CMC Capital Partners is a media and entertainment focused fund, with Li as chairman.
The fund earlier acquired a controlling stake in Star China, the onetime China assets of News Corp., and has a joint venture with DreamWorks Animation.
Imax’s screen count in China has doubled since 2011 to 173 screens, and there are an additional 237 screens in backlog as of December 31, 2013. The screen expansion has been underpinned with multi-theater deals with local players including Wanda and TCL.
Imax’s Gelfond said his company would retain a majority stake in Imax China after an IPO is completed.
THR Newsletters
Sign up for THR news straight to your inbox every day