Rachesky is offering the shares via his investment firm, MHR Fund Management, and gives underwriter J.P. Morgan Securities a 30-day option to purchase 1,500,000 shares.
This will reduce Rachesky’s stake by about 7% from the current 35%, and none of the proceeds will go towards financing Lionsgate’s programming or film businesses.
Lionsgate’s share price has fallen on the news, though the US$33.68 trading price is still up considerably on this time last year.
In December, reports emerged Lionsgate had talked to Chinese group Dalian Wanda about a company sale, though it is thought Rachesky still wants to keep control of the firm. Another Chinese firm, Alibaba, was rumoured to be interested in a deal, too.
Last month it secured a US$375 million film financing pact with Chinese broadcaster Hunan TV.
Further adding to mounting speculation, John Malone joined the firm’s board earlier this year after a share swap deal with the cable TV mogul’s Starz Entertainment.
Lionsgate is behind series such as Mad Men, Orange is the New Black and Nashville.