PE investors CMC Capital, FountainVest partially exit IMAX China

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.

IMAX Corporation is IMAX China’s corporate parent.

“More importantly, we are pleased that CMC and FountainVest will continue as strategic investors in our company. These two funds were the very first investors in IMAX China, and their ongoing position as investors reflects their high degree of confidence in the future prospects and growth potential of IMAX China,” he added.

Chinese entertainment mogul and CMC chairman Li Ruigang commented that the PE firm remains committed partners and is very supportive of the company and its leadership as IMAX China furthers its position as one of China’s leading innovators of entertainment technology.

“I look forward to continuing to serve on the Board of IMAX China, working together to expand and grow China’s movie and entertainment sector and increasing the presence of premium Chinese content around the globe through the joint venture CMC and IMAX China have created in connection with the IMAX China Film Fund,” Li said.

IMAX China listed on the Main Board of The Stock Exchange of Hong Kong Limited on October 8, 2015, and the company’s stock price has appreciated more than 63 per cent as of March 22, 2016.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.