Imax sells 20% of its China business

Imax Corp, the world's leading giant-screen theater operator, plans to sell a 20 percent stake in its Chinese business to two China-focused investment companies in an $80 million deal to pave the way for expansion and an anticipated initial public offering in the China market, according to a report in The Wall Street Journal on Tuesday.

Richard Gelfond, chief executive officer of Imax Corp, said in an interview that China Media Capital, an investment fund launched in 2009, and private-equity firm FountainVest Partners would pay $40 million each to purchase 10 percent of the stake by early 2015, said the report.

The investors will help to pave the way for a public offering of shares of the China operation - Imax China Holding Inc - in the next five years, said Gelfond.