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Open offer: Reliance MediaWorks, Prime Focus promoters pick up 16.1% for Rs 250 cr
MUMBAI: At the end of the mandatory open offer, Reliance MediaWorks Ltd (RMWL) and promoters of Prime Focus Ltd have acquired an additional 16.10 per cent stake in the merged VFX and media services giant for approximately Rs 250.3 crore (Rs 2.50 billion).
Together RMWL and Prime Focus acquired around 4.8 million shares in the open offer which concluded last week.
The two companies had signed a deal in July last year, wherein Prime Focus proposed to acquire Anil Ambani-promoted RMWL’s film and media services business to form the world’s largest VFX company.
Following the merger, promoters of the two companies respectively hold 33.5 per cent (Prime Focus) and 30.2 per cent (RMWL) stakes in the merged entity. The multi-layered deal includes the infusion of Rs 120 crore (Rs 1.20 billion) by RMWL in Prime Focus for the stake, while Prime Focus promoters will also pump in the same amount.
RMWL has also completed the acquisition of 11.3 million shares as per the deal.
Incidentally, Prime Focus will be holding EGM on 28 January to complete preferential allotment worth Rs 240 crore (Rs 2.40 billion), following which the combined holding of the two parties will be 79.86 per cent.
Prime Focus scrip saw a 19.98 per cent jump to hit the upper circuit on the BSE to close at Rs 51.95 apiece on the BSE on Monday.