Lionsgate Chairman Mark Rachesky to Sell 10 Million Shares

The secondary offering will see MHR Fund Management unload around 20 percent of its stake in the studio, valued at around $337 million.

Lionsgate chairman Mark Rachesky is expected to sell 10 million shares in the studio as part of a secondary offering by his investment shingle MHR Fund Management.

The stake, to be unloaded as part of a secondary offering, represents around 20 percent of the lead shareholder's stake in Lionsgate, which is valued at around $337 million. Rachesky's stake in Lionsgate in 2011 denied activist shareholder Carl Icahn a proxy fight win over the studio.

The lead investor, who emerged as a key ally of Lionsgate CEO Jon Feltheimer and top management at the studio, was last year reportedly in talks to sell his 37.4 percent stake to Chinese e-commerce giant Alibaba, led by chairman Jack Ma.

Lionsgate will not sell any shares in the offering, and will not receive any proceeds from the sale. J.P. Morgan Securities LLC will act as sole underwriter for the offering.

The secondary offering was announced on Tuesday as part of an SEC filing by Lionsgate.