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Prime Focus to divest 30% stake in Digital Domain-Reliance, set up a fresh JV
MUMBAI: Prime Focus, an integrated media services company, is offloading its 30% stake in Digital Domain-Reliance to its joint venture (JV) partner.
The company will set up a fresh JV to carry on virtual reality and advertising businesses in India.
“The board of directors of the company… Considered and approved divestment of 30 per cent stake in Digital Domain-Reliance, LLC (DD-Reliance), to the existing holder of the remaining 70 per cent stake in DD-Reliance, which is ultimately wholly-owned by Digital Domain Holdings (DDHL),” Prime Focus said.
Headquartered in Hong Kong, DDHL’s shares are listed on the Main Board of The Stock Exchange of Hong Kong.
Prime Focus will enter into a proposed 50:50 JV with DDHL to carry on virtual reality and advertising businesses in India on terms as may be agreed between the parties. The board has given its nod for such a proposal and an MoU has been signed.
The company said, “The consideration for the 30% stake sale (through an international wholly-owned subsidiary of Prime Focus) is $30 million. As part of the possible JV transaction worth $25 million, Prime Focus Group will, inter alia, infuse $5 million into the new JV.”
The proceeds from the sale are expected to be partly used for expansion of its advertising business, catalyze the growth of Virtual Reality in India and also pare debt, the company added.