Canadian entertainment tech company Imax has filed a proposal to acquire full ownership of Imax China for US$124 million (approximately C$163.6 million).

Imax will acquire the outstanding 96.3 million shares, each worth approximately HK$10 (C$1.70), in Imax China under the proposal. Upon approval, the deal will see the company own 100% of its Shanghai-headquartered subsidiary, according to a news release.

The acquisition, which is subject to customary closing conditions, will enable Imax to “pursue new growth opportunities” in the Chinese market. The offer has been approved by both Imax Corporation and Imax China’s boards of directors, added the release. It is expected to close later this year.

Imax China CEO Daniel Manwaring will continue in his role after the deal closes. Manwaring will report to Imax Corporation CEO Rich Gelfond and oversee all local business functions, which include distribution, marketing and finance. Imax China will remain headquartered in Shanghai with offices in Beijing.

The Hong Kong-listed subsidiary was established by Imax Corporation in 2011 to oversee its business in Greater China. There are more than 770 Imax commercial locations in Greater China, said the release.

“This deal is a win-win for Imax Corporation and Imax China, as it unlocks significant financial benefits for Imax while offering Imax China investors a meaningful premium to current market prices,” said Gelfond in a statement, adding “this transaction has the potential to usher in a new era of expansion for our brand and technology in this thriving market for entertainment.”

Photo by Lars Niki/Getty Images for Imax