IMAGI INT'L (00585.HK): to buy 67% of VFX firm Skyline VFX for HK$171.4m

NewTimeSpace News: On 6 November 2026, Imagi International Holdings Limited (00585.HK) disclosed that its wholly-owned subsidiary Imagi Venture (No. 1) International Limited entered into a share purchase agreement with the vendor, Ms. Chen Changfang, on 5 November (after trading hours) to conditionally acquire 67% of the entire issued share capital of the target company, Skyline VFX Ltd, for a total consideration of HK$171,395,349 (about HK$171.4 million).

Of the consideration, HK$34,279,069.20 (about HK$34.28 million) will be paid in cash and the remaining HK$137,116,279.80 will be settled by issuing 29,487,372 consideration shares at HK$4.65 each, representing a discount of about 17.19% to the closing price of HK$5.615 on the same day. The target company is incorporated in the British Virgin Islands and conducts content production services in China through its indirect wholly-owned subsidiary Beijing Tairan Ruoqing, covering film and television visual effects, digital advertising, virtual reality and AIGC digital content generation, with notable projects including Creation of the Gods I: Kingdom of Storms, Panda Plan, I Am Nobody, The Battle at Lake Changjin and the TV series Three-Body. The board considers the acquisition a first step in the group's transformation towards AI-empowered media and entertainment, helping refocus on its core digital entertainment business.

As an incentive for the vendor to achieve performance targets, the company will issue a total of 33,196,863 unlisted warrants in three tranches of 11,065,621 each at completion, with an initial exercise price of HK$4.65 per share, tied to target revenue of no less than RMB120 million, RMB168 million and RMB218 million for FY2027, FY2028 and FY2029 respectively; if fully exercised, the total proceeds would be about HK$154.4 million. As one or more applicable percentage ratios are 25% or above but below 100%, the acquisition constitutes a major transaction subject to shareholders' approval at an extraordinary general meeting and HKEX approval for the listing of the consideration shares and warrant shares.