Reliance Group and Prime Focus complete transaction
Prime Focus Limited (BSE: 532748) the world’s largest media services powerhouse today announced that it has completed the transaction to combine with Reliance MediaWorks’ global Film and Media Services business. The transaction was first announced in July 2014 and received CCI (Competition Commission of India) approval on 15 December 2014.
RMW and the promoters of Prime Focus, Naresh and Namit Malhotra, have infused fresh equity capital of INR 120 crore into Prime Focus at INR 52 per share, through a preferential allotment, aggregating INR 240 crore. As part of the transaction, the India and overseas operations of RMW’s Film and Media Services business was combined with PFL through a slump sale. The net consideration was paid in the form of fresh equity shares of PFL valued at INR 52 per share.
The promoters of PFL and RMW had earlier announced the mandatory open offer in Prime Focus, to the extent of 26% of the fully diluted share capital of PFL, at INR 52 per share, in compliance with applicable SEBI rules and regulations. The open offer closed on 16 January 2015.
The tryst with RMW was announced close on the heels of Prime Focus’ Hollywood facing creative services subsidiary Prime Focus World merging its VFX business with acclaimed VFX house Double Negative. The combination of RMW – PFL and Academy® Award winning Double Negative creates the world’s largest and the most integrated media services group with over 5500 people present across 20 locations offering visual effects, stereo 3D conversion, animation, and cloud-based digital media solutions that transcend the film, advertising and television industries.
Prime Focus and Double Negative are hard at work on an action-packed slate of upcoming movies, including Avengers: Age of Ultron, Terminator: Genisys, Ant-Man, Alice in Wonderland: Through the Looking Glass, Mission Impossible 5, The Hunger Games: Mockingjay Part 2 and Batman v Superman: Dawn of Justice. Recently delivered shows include Kingsman: The Secret Service, Ex Machina, Jupiter Ascending, Seventh Son and In The Heart Of The Sea.
“We have completed the last leg of a protracted but path breaking transaction today”, said Namit Malhotra, Founder, Executive Chairman & Global CEO, Prime Focus. “From here on our full focus will be to drive the integration process and unlock synergies for the benefit of our customers, employees and stakeholders worldwide. Today we are best positioned to offer outstanding creativity, cutting edge technology, integrated Digital Media Services, never before scale, financial robustness and sustainability.”