Imagi International buys 67% of Skyline VFX for HK$171M

Imagi International Holdings Limited, the Hong Kong-listed media and financial-services group (stock code 585), said on November 6, 2026 that its wholly-owned subsidiary Imagi Venture (No. 1) International Limited agreed on November 5 to buy 67% of Skyline VFX Ltd from Ms. Chen Changfang for HK$171,395,349, paid as HK$34,279,069.20 in cash and HK$137,116,279.80 in 29,487,372 new shares at HK$4.65 each, according to the company's stock-exchange announcement.

The share issue price of HK$4.65 is a discount of about 17.19% to Imagi's closing price of HK$5.615 on November 5, and a premium of about 3.7% to the 30-day average closing price of HK$4.484, the announcement states. The new shares carry a 12-month lock-up. Ms. Chen keeps about 33% of Skyline VFX, which becomes a joint venture and a non-wholly-owned subsidiary whose accounts Imagi will consolidate.

Imagi will also issue Ms. Chen 33,196,863 unlisted warrants in three tranches of 11,065,621, each exercisable at HK$4.65, tied to Skyline's audited consolidated revenue reaching no less than RMB120 million for the year ending December 31, 2027, RMB168 million for 2028 and RMB218 million for 2029. Full exercise would raise about HK$154.4 million for general corporate purposes. An independent valuer put the target group at about RMB222.9 million as of September 30, 2026.

Skyline VFX is a film and television visual-effects producer with a track record of nearly a decade in China. Its notable projects include the feature films Creation of the Gods: Chaoge Fengyun, Panda Plan, The Traveller and The Battle at Lake Changjin, and the television series Three-Body, the announcement states. It has begun using AI in development and production. Its unaudited revenue fell to RMB12.1 million in 2025 from RMB30.5 million in 2024, and it posted a net loss after tax of RMB13.6 million in 2025 with negative net assets of RMB50.4 million.

Imagi began computer-generated imagery operations in 2000 and was one of Hong Kong's leading computer-graphics animation studios in the 2000s, then wound the business down from the late 2000s. In January 2016 the board resolved to build an integrated financial-services business. The board now calls the acquisition the first step in the group's "progressive rebalancing towards AI-enabled media and entertainment," and says Imagi will not withdraw from financial services in the short term.

The deal is a major transaction under Chapter 14 of Hong Kong's listing rules, because one applicable percentage ratio is 25% or more but under 100%. It needs shareholder approval at a special general meeting, and completion is conditional on due diligence, a valuation report of at least RMB220 million, and Hong Kong Stock Exchange approval for listing the consideration and warrant shares, among other conditions. The terms were carried on November 6 by Hong Kong market outlets including Longbridge, GMT Eight and NewTimeSpace.

For creators, the deal puts a traditional VFX house with an AI ambition inside a listed parent, which could mean more AI-assisted effects capacity in Chinese film and television production. It is a bet on a production team and pipeline rather than on a model, which is a different shape from most AI video deals.

The circular with the deal's full terms and the notice of the special general meeting is due to shareholders on or before November 27, 2026, and the conditions must be satisfied or waived by December 31, 2026.