This Article is From Jul 02, 2014

Reliance MediaWorks to Buy 30.2% Stake in Prime Focus

Reliance MediaWorks (RMW) and Prime Focus have announced a combination of their global film & media services business.

Reliance MediaWorks and the promoters of Prime Focus, Naresh and Namit Malhotra, will each infuse fresh equity capital of Rs 120 crore into Prime Focus at Rs 52 per share, through a preferential allotment, aggregating Rs 240 crore.

The proceeds of the deal to be used to fund the recent merger of Double Negative, the academy award winning visual effects provider, with Prime Focus World.

Post the preferential allotment and the combination of their businesses, the fully diluted shareholding of the promoters of Prime Focus will be 33.5 per cent while Reliance MediaWorks will be at 30.2 per cent.

The promoters of Prime Focus and Reliance MediaWorks also simultaneously announced a mandatory open offer in Prime Focus, for 26 per cent of the fully diluted share capital of Prime Focus, at Rs 52 per share.