Why Imax Stock Blasted Nearly 6% Higher on Thursday
An expanding strike by talent in the film and TV industry didn't dissuade investors from piling into (NYSE: IMAX) stock on Thursday. Shares of the big-screen entertainment purveyor rose by just under 6% as a result, stomping the 0.8% gain of the S 500 index.
After market hours Wednesday, Imax announced that it has made a formal offer to acquire the chunk of associated business Imax China that it doesn't already own. It is offering 10 Hong Kong dollars ($1.28) per share in cash for the outstanding stake for Imax China, which is listed on the Hong Kong Stock Exchange. All told, that shakes out to a potential outlay of HK$124 million ($15.8 million).
That level represents a premium of roughly 49% to Imax China's 30-day average closing price, Imax said in the press release trumpeting the offer. The specialty cinema company wrote in the document, "The proposed acquisition of Imax China will enable greater operational flexibility to pursue new growth opportunities and applications of Imax technology in the Chinese market."
Source Fool.com
Imax Corp. Stock
The stock is one of the favorites of our community with 29 Buy predictions and 1 Sell predictions.
As a result the target price of 22 € shows a slightly positive potential of 15.79% compared to the current price of 19.0 € for Imax Corp..
