Prime Fo­cus Off­loads 30% Stake in Dig­i­tal Do­main-Re­liance

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

Mum­bai: Prime Fo­cus is of­fload­ing its 30% stake in Dig­i­tal Do­main-Re­liance to its joint ven­ture (JV) part­ner. DD-Re­liance is ul­ti­mately wholly-owned by Hong Kong-head­quar­tered Dig­i­tal Do­main Hold­ings Lim­ited (DDHL).

Prime Fo­cus said it will set up a new JV with DDHL to carry on vir­tual re­al­ity and ad­ver­tis­ing busi­nesses in In­dia.

“The par­ties have signed a MoU re­gard­ing the pro­posed for­ma­tion of a 50:50 JV with DDHL to carry on vir­tual re­al­ity and ad­ver­tis­ing busi­nesses in In­dia. The to­tal con­sid­er­a­tion payable to the Prime Fo­cus Group for the 30% stake sale and pos­si­ble for­ma­tion of JV is $55 mil­lion worth of shares in the Hong Konglisted DDHL based on an is­sue price of HK$0.596 per share,” the com­pany said.

The above trans­ac­tions are sub­ject to, in­ter-alia, due dili­gence and cus­tom­ary reg­u­la­tory and other stake­holder ap­provals.

The pro­ceeds from the sale, as and when they are mon­e­tised, will be partly used for ex­pan­sion of its ad­ver­tis­ing busi­ness, to catal­yse the growth of vir­tual re­al­ity in In­dia and also to pare down debt.

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