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Prime Focus completes preferential allotment to promoters, Reliance MediaWorks
MUMBAI: The merger of Anil Ambani-led Reliance MediaWorks’ film and media services business with Prime Focus Ltd is finally complete.
Prime Focus has completed the preferential allotment of shares to promoter Monsoon Studio Private Ltd and RMW worth Rs 120 crore (Rs 1.20 billion) each and further 67.31 million shares to RMW towards the transfer of its film and media services business.
All the transactions were done at a price of Rs 52 per share of Prime Focus.
The company said that while most of the conditions identified in the definitive agreements have been fulfilled, there are still some which are pending. Thus, the board has decided to extend the long stop date from 31 December 2014 to 31 March 2015 and seek a fresh approval from the members for the preferential allotment through a fresh EGM.
Following this, promoters of Prime Focus and RMW will hold 33.5 per cent and 30.2 per cent stake respectively in the merged entity.
RMW along with persons acting in concert (PAC) have made an open offer to the shareholders, which is triggered by the preferential allotment.
Earlier this month, the Competition Commission of India (CCI) approved the merger, making way for the creation of a visual effects (VFX), 3D conversion and animation entity with a combined turnover in excess of Rs 1,800 crore (Rs 18 billion).