--- title: "IMAGI INT'L to Acquire 67% Stake in Skyline VFX for HK$171 Million, Strategically Returning to Digital Entertainment and AI Media" type: "News" locale: "en" url: "https://longbridge.com/en/news/304545195.md" description: "IMAGI INT'L announced that its wholly-owned subsidiary intends to acquire a 67% stake in Skyline VFX for HK$171 million. The consideration consists of HK$34.2791 million in cash and HK$137 million in consideration shares. This move marks the company's strategic return to the digital entertainment and AI media sectors, aiming to reshape its core business through mergers and acquisitions" datetime: "2026-11-05T23:48:06.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/304545195.md) - [en](https://longbridge.com/en/news/304545195.md) - [zh-HK](https://longbridge.com/zh-HK/news/304545195.md) generator: "portal-rs" --- # IMAGI INT'L to Acquire 67% Stake in Skyline VFX for HK$171 Million, Strategically Returning to Digital Entertainment and AI Media According to Zhitong Finance APP, IMAGI INT'L (00585) announced that on November 5, 2026 (after trading hours), the buyer, Imagi Venture (No. 1) International Limited (a wholly-owned subsidiary of the Company), and the seller, Chen Changfang, entered into a share purchase agreement. Under this agreement, the buyer conditionally agreed to acquire, and the seller conditionally agreed to sell, the sale shares for a total consideration of HK$171 million. The total consideration will be paid as follows: (i) an amount equivalent to HK$34.2791 million, namely the cash consideration, in cash; and (ii) an amount equivalent to HK$137 million will be paid by allotting and issuing consideration shares under the general mandate. Upon completion and immediately thereafter, all issued shares of the target company, Skyline VFX Ltd, will be owned by the seller and the buyer at approximately 33% and 67%, respectively. As an incentive for the seller to achieve the target group's target revenues of no less than RMB 120 million, RMB 168 million, and RMB 218 million for the fiscal years ending December 31, 2027, December 31, 2028, and December 31, 2029, respectively, the Company will issue warrants to the seller upon completion pursuant to the share purchase agreement. These warrants entitle the holders to subscribe for a corresponding number of warrant shares at any time during the relevant warrant exercise period, subject to the terms and conditions set out in the warrant instrument, based on the ratio of the target group's actual audited consolidated revenue to the target revenue in each target period. The Group gradually scaled down its computer-generated imagery business starting in the late 2000s, and by January 2016, the Board resolved to develop an integrated financial services business. Financial services and investment subsequently became the Group's core strategy. Following recent changes in the Company's shareholder base and the appointment of new management, the Board has realigned and updated the Group's long-term vision and strategy. The Board has decided to capture emerging opportunities in digital production and artificial intelligence-generated media and entertainment, enhance its existing digital entertainment business, and return to the Company's original area of expertise. Significant changes have occurred in China's film and television market in recent years. The development of generative AI is transforming content development, animation production, visual effects, and distribution methods, while AI-generated content has gained widespread market acceptance and popularity in China. The Board believes that these developments, coupled with the expanding scale of the entertainment markets in China and globally, provide significant long-term opportunities for the Group to re-establish digital entertainment as its core business. To refocus on the digital entertainment business, the Board has decided to implement this strategy by acquiring the target company, which is an established player in the industry with an experienced team. The target company is one of the market leaders in visual effects production for Chinese films and television, with a track record of nearly ten years. Notable projects include the influential feature films "Creation of the Gods I: Kingdom of Storms," "Panda Plan," "The Outcast," and "The Battle at Lake Changjin," as well as the critically acclaimed TV series "Three-Body." The target company has also begun adopting state-of-the-art AI technologies in its development and production processes. The acquisition is the first step in the Group's gradual rebalancing towards a transformation into an AI-enabled media and entertainment business. The Group will not exit the financial services business in the short term and intends to implement this strategic transition in a prudent and orderly manner, aiming to manage execution risks and maintain business continuity. The Directors believe that the acquisition will enable the Group to: accelerate the adoption of AI-enabled content development and production capabilities through a mature operational platform and an experienced team; develop new revenue streams in the AI-enabled media and entertainment sector, including content production, intellectual property licensing, distribution, and other expected revenue sources; re-establish a significant operational foothold in China's digital entertainment market and participate in its long-term growth; and leverage the Group's Hong Kong listing platform and the target company's capabilities to gradually expand from Hong Kong to international markets. In view of the above, the Board believes that the acquisition (including the allotment and issuance of consideration shares and warrants under the general mandate, and the establishment of a joint venture upon completion) will help reposition the Group's strategic vision and allow for its immediate implementation. ### Related Stocks - [00585.HK](https://longbridge.com/en/quote/00585.HK.md) ## Related News & Research - [Imagi Announces HK$171.4 Million Acquisition and Joint Venture](https://longbridge.com/en/news/304558324.md) - [Imagi International Directors Complete Hong Kong Listing Rules Compliance Training](https://longbridge.com/en/news/301267673.md) - [VSBLTY Partners With QuadGen to License AI Platform for India’s Smart Cities](https://longbridge.com/en/news/304742065.md) - [Why Cloudflare Stock Is In Focus After An Earnings Beat](https://longbridge.com/en/news/304745772.md) - [Li Auto (LI) Launches The Li i6 As Fair Value Stays In Focus](https://longbridge.com/en/news/304741271.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**